Singapore's consumer price inflation experienced a minor increase in November, following a drop to its lowest point in over three and a half years in the preceding month, according to data released by the Monetary Authority of Singapore and the Ministry of Trade and Industry on Monday.
The consumer price index rose to 1.6% on an annual basis in November, up from a 1.4% increase in October, slightly below the anticipated rate of 1.8%.
Concurrently, core inflation continued to ease, declining to 1.9% in November from 2.1% in October, primarily due to slower growth in food and services prices.
The upward movement in overall inflation was largely driven by a slower reduction in private transport costs, which offset the decrease in core inflation.
Private transport costs experienced an annual contraction of 0.7% in November, an improvement from the 2.5% decline observed in the previous month. Food inflation also slowed, coming down to 2.4% from 2.6%.
Data indicated that prices for retail and other goods increased consistently at a rate of 0.1%, while electricity and gas inflation remained steady at 2.5%.
The Monetary Authority of Singapore projects that MAS Core Inflation will remain below 2% until the end of 2024. Core inflation is anticipated to average between 2.5% and 3.0% in 2024, before further declining to a range of 1.5% to 2.5% in 2025.
The CPI-All Items inflation is expected to average between 1.5% and 2.5% in 2025, driven by an anticipated increase in private transport inflation.
The Monetary Authority of Singapore also noted that inflation risks are relatively balanced. Domestically, stronger-than-expected labor market conditions could slow the reduction in unit labor cost growth.
On the international front, rising geopolitical tensions may pose a risk of higher imported costs, while a significant global economic downturn could lead to a greater easing of cost and price pressures.
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