Singapore’s core inflation rose to 2.7% in August 2024 compared to a year earlier, according to official data released on Monday. This is higher than the 2.6% forecast by economists in a Reuters poll and marks an increase from the 2.5% rate recorded in July. The uptick in core inflation, which excludes private road transport and accommodation costs, suggests that Singapore’s economy is continuing to stabilize.
Headline inflation for August stood at 2.2%, closely aligning with expectations. Inflation in Singapore has been cooling since peaking at 5.5% in early 2023, dropping below 3% in June. The latest data shows a slight increase but remains well below previous highs, indicating balanced price pressures as the economy steadies.
The Monetary Authority of Singapore (MAS) has maintained its policy stance since a tightening move in October 2022.
singapore’s core inflation uptick
The central bank’s next policy review is scheduled for October 2024, and investors are closely monitoring these steady inflation trends.
Singapore’s economic performance has been robust, with the government upgrading its GDP growth forecast for 2024 to a range of 2.0% to 3.0%, up from the previous range of 1.0% to 3.0%. This adjustment comes after the economy posted stronger-than-expected growth in the second quarter. Economists polled by the central bank have also revised their growth expectations for Singapore, now projecting a 2.6% expansion in 2024, up from their previous forecasts of 2.4% in surveys conducted in March and June.
While many global economies face slowing growth and inflationary pressures, Singapore’s recent performance stands out. The modest rise in inflation, coupled with the upgraded GDP forecast and economists’ revised growth expectations, suggests a stable investment climate and positions Singapore as a resilient player in a turbulent global landscape. As the country continues to navigate the challenges posed by the global economic environment, the MAS and investors will closely monitor inflation trends and economic indicators to assess the effectiveness of Singapore’s economic policies and strategic adjustments.
- ChannelNewsAsia.”Singapore core inflation rises to 2.7% in August, first increase in 6 months”.
- TheEdgeMalaysia.”Singapore’s August core inflation at 2.7% y-o-y, above forecast”.
- Finimize.”Singapore’s Core Inflation Rose To 2.7% In August 2024″.