SINGAPORE (Reuters) – Singapore’s core inflation rate grew by 1.9% year-on-year in November, marking the smallest increase in nearly three years and falling short of economists’ predictions, according to official data released on Monday.
This core inflation measure, which excludes private road transport and housing costs, came in below the 2.1% growth anticipated by economists in a Reuters poll. The November figure also represented a decline from October’s 2.1% rise and was the lowest since November 2021, when core inflation increased by 1.6%.
Meanwhile, headline inflation, which includes all components, rose 1.6% annually in November, slightly below the 1.8% expected by analysts.
The Monetary Authority of Singapore (MAS) had projected core inflation to hover around 2% during the fourth quarter. The recent slowdown in inflation has fueled speculation that the central bank might have more flexibility to adjust its monetary policy in January. However, some analysts believe the MAS could delay easing until later in 2025, considering potential shifts in economic policies under the incoming U.S. President Donald Trump.
In its October meeting, the MAS left monetary policy unchanged despite signs of stronger growth and lower inflation. The central bank has maintained its policy stance since its last tightening in October 2022, which marked the fifth consecutive adjustment.
सम्बंधित ख़बरें
On the economic growth front, Singapore’s trade ministry recently revised its GDP growth forecast for 2024, raising it to 3.5% from an earlier range of 2.0% to 3.0%. The upward adjustment followed an unexpected 5.4% year-on-year GDP growth in the third quarter.
According to a recent survey by the MAS, most economists expect the central bank to hold its monetary policy steady in its quarterly reviews scheduled for January, April, and July. However, about one-third of those surveyed anticipate a potential easing in January through a reduction in the slope of the Singapore dollar’s nominal effective exchange rate, a decrease from the 50% who predicted such a move in the previous survey.