S'pore Core Inflation Jumps To Highest Since Dec '23 At 1.4%
Singapore's February year-on-year core inflation accelerated to a record high of 1.4%, the highest level recorded since December last month, driven by rising import costs and energy price hikes that economists warn will persist into March due to war-led pressures ahead of potential MAS policy tightening in April while headline inflation eased slightly to 1.2%.
Key Points
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1Singapore's core inflation rose year-on-year by a record high of 1.4 per cent in February, up from January levels.
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2This acceleration marks the highest rate since December and is attributed to rising import cost pressures driven largely by energy price hikes related to global conflicts.
Developments
Perspectives
Singapore's core inflation rose year-on-year in February, up from January
— (Mustsharenews)February is the highest since 1.7 per cent was recorded previously.
— (Asiaone) - MAS & MTIEconomists expect a raised full-year forecast and policy tightening by April due to war-led cost pressures, though Barclays expects only July action
— (Businesstimes.com.sg)'Core inflation' is the highest since December 2024.
— (Channelnewsasia)Singapore's core inflation rose 0.4% year-on-year from January due primarily to seasonal effects and increased prices for food, services (such as airfares), retail goods like medicines, furniture, health products, energy costs eased in February but global oil price increases are expected to raise import expenses soon
Singapore's core inflation rose 0.4 percentage points year-on-year from January and reached its highest level since December of last month, driven by seasonal effects around Chinese New Year that increased prices for food services, retail goods, accommodation costs (which fell), private transport expenses due to lower fuel rates, electricity bills as well airfares in February's holiday period.
Private-sector economists anticipate the Monetary Authority of Singapore (MAS) will raise its full-year inflation forecasts and tighten monetary policy in April due to war-led cost pressures, following a February core acceleration that reached 14-month highs driven by seasonal effects on services, food, retail goods. While most experts expect this move soon as an outlier expects it only later than July is noted for Barclays' view
Singapore's core inflation rose by year-on-year basis on February compared with January at an annual rate according to official data released Monday (Mar 23). This increase was driven primarily by seasonal effects associated with the Chinese New Year, while overall consumer prices fell due to lower accommodation and private transport costs.