SINGAPORE: From 1.9% in November to 1.8% in December, Singapore’s core inflation rate decreased year over year. The Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore (MAS) announced on Thursday, January 23, that the decline was caused by a slowdown in services inflation.
November 2021 was the last time core inflation was lower, at 1.6%. Core inflation, which does not include lodging and private transportation, rose 0.5% monthly. In December, total inflation remained constant at 1.6% year-over-year. This was due to a more moderate drop in the price of private transport, which counterbalanced reduced core and lodging inflation, according to MAS and MTI.
Overall inflation, which does not include non-consumption expenses like buying homes, stocks, and other financial assets, as well as income taxes, increased by 0.3% month over month.
Core inflation decreased from 4.2 percent in 2023 to an average of 2.7% for the entire year 2024. In 2024, overall inflation was 2.4%, which was lower than the 4.8% rate the year before. Due to a slower reduction in car prices, private transport costs decreased from -0.7 percent in November to -0.1 percent in December.
The inflation rate for services decreased from 2.2% to 1.8%. As vacation spending decreased and the cost of public transportation increased more slowly, inflation decreased.
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