Singapore consumer inflation remains steady at 1.2% in November, missing estimates
Aerial view of Marina Bay Street Circuit in Singapore on September 17, 2024.
Roslan Rahman | Afp | Getty Images
Inflation in Singapore remained stable at 1.2% in November, below expectations. higher increase in service prices This was offset by a sharp decline in electricity costs.
The reading was below the 1.3% average estimate of analysts surveyed by Reuters.
Core inflation in the city-state, which excludes private transport and accommodation prices, also came in at 1.2%, compared to expectations of 1.3%.
The 1.9 percent increase in services inflation was driven by larger increases in point-to-point transportation costs, which include taxis, ride-hailing and ride-sharing services, and health insurance.
In contrast, inflation in retail and other goods slowed due to the decline in electricity costs as well as the decline in prices of clothing and shoes and personal care appliances.
MAS forecasts core inflation to be around 0.5% in 2025, then rise to 0.5-1.5% in 2026. MAS expects headline inflation to average 0.5%-1.0% in 2025 and 0.5-1.5% in 2026.
The inflation reading follows better-than-expected economic data from Singapore; Non-oil exports increased by 11.6% annually in November, exceeding the forecasts for a 7% increase.
Singapore’s economy grew by 4.2% in the third quarter, exceeding growth expectations of 4%.
Last month, the country’s Ministry of Trade and Industry upgraded GDP forecast for the full year “Around 4%” for 2026 and to around 1%-3%, a sharp revision from an April forecast when it warned zero growth was also a possibility.
The country’s commerce ministry said the global environment was more resilient than expected, with manufacturing and export demand remaining strong in the third quarter.
MAS kept the monetary policy constant in the last two meetings, after loosening it in January and April meetings due to the threat of tariffs on the global economy.
