SINGAPORE: Singapore’s core inflation rose in April, marking the first year-on-year increase after six months.
Core inflation, which excludes private transport and accommodation, came in at 0.7 per cent in April. This is above the March reading of 0.5 per cent, which was a four-year low, and the median forecast of 0.5 per cent in a Reuters poll of economists.
The April increase was driven by higher inflation in services and food, which more than offset lower retail and other goods inflation, said the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) on Friday (May 23).
On a month-on-month basis, core inflation rose by 0.5 per cent.
Overall inflation remained at 0.9 per cent in April as the rise in core inflation was offset by lower accommodation and private transport inflation, said MAS and MTI.
They added that Singapore’s imported inflation is expected to remain “moderate”, noting that amid slowing global demand and ample supply conditions, global crude oil prices are projected to be lower compared to 2024.
“Food commodity price increases should also stay contained,” said MAS and MTI.
“Although the trade conflicts could be inflationary for some economies, their impact on Singapore’s import prices is likely to be more than offset by the disinflationary drags exerted by weaker global demand.”
Both core inflation and overall inflation are projected to average 0.5 per cent to 1.5 per cent in 2025.
