Inflation in Singapore Moderates in November

27 Dec, 2023

Inflation in Singapore Moderates in November

In November, Singapore's economic landscape witnessed a notable shift in its inflation trends, showcasing a marginal decrease in the consumer price index (CPI). This decline primarily stemmed from a slowdown in the rate of price growth across various sectors, notably impacting retail goods, food items, and essential utilities like electricity and gas. This dip in the CPI indicates a nuanced adjustment in the cost dynamics during this period.

The core inflation, which excludes expenses related to private transport and accommodation, exhibited a slight reduction, standing at 3.2% year-on-year in November. This figure marked a modest decrease from the preceding month's 3.3%, as confirmed by reports from Singapore's Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore (MAS).

Corresponding with this trend, the broader all-items inflation experienced a tangible downturn, registering at 3.6% year-on-year in November. This figure reflected a noteworthy drop from the 4.7% recorded in October, primarily attributed to diminished costs associated with private transport.

Projections outlined by the MTI and MAS indicate a calculated outlook for inflation in Singapore. The estimated average for overall inflation in the current year is anticipated to hover around 5%, while core inflation is expected to maintain a level around 4%. Looking ahead to the forthcoming year, these government agencies anticipate a moderated economic landscape. Projections for 2024 suggest an expected range of overall inflation between 3% to 4%, while core inflation is projected to fluctuate within the range of 2.5% to 3.5%.

This nuanced economic data provides valuable insights into Singapore's evolving economic dynamics, signaling a subtle adjustment in inflation rates and offering an indication of the anticipated trajectory for the year ahead.