Singapore’s core inflation moderates to 3.1% YoY in January, reflecting lower services and food prices

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23rd February 2024 – (Singapore) Official data released on Friday revealed that Singapore’s core inflation, as measured by the consumer price index (CPI), declined to 3.1 per cent year-on-year in January, compared to 3.3 per cent in December. The Ministry of Trade and Industry and the Monetary Authority of Singapore attributed this decrease to reduced inflation in services and food, despite the recent increase in the goods and services tax (GST) rate from 8 per cent to 9 per cent.

On a month-on-month basis, the core CPI registered a 0.6 per cent increase in January, partly influenced by the adjustment in the GST rate, according to the government agencies.

It is noteworthy that the core CPI excludes costs related to private transport and accommodation in order to provide a more accurate representation of household expenses.

Moreover, Singapore’s all-items inflation also eased, reaching 2.9 per cent year-on-year in January, down from 3.7 per cent in December.