Singapore’s CPI-All Items inflation (or headline inflation) eased to 6.5% on a y-o-y basis in December, down from 6.7% in November.
The lower headline inflation was mainly attributable to slower inflation in private transport. Private transport inflation moderated as car and petrol prices rose at a more gradual pace.
Accommodation inflation also edged down as housing rents rose at a slower pace.
Meanwhile, the Monetary Authority of Singapore (MAS) Core Inflation, which excludes the “accommodation” and “private transport” components, came in at 5.1% on a y-o-y basis in December, unchanged from November.
This was attributable to the smaller price increases for retail & other goods as well as electricity & gas. However, the smaller increases were offset by higher inflation for food and services.
On a m-o-m basis, core CPI increased by 0.6% while headline CPI rose by 0.2%.
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In 2022, core inflation averaged at 4.1%, higher than 2021’s 0.9%. Over the same period, headline inflation stood at 6.1%, higher than the 2.3% print in 2021.
Looking ahead, core inflation is projected to stay elevated for the first half of 2023 before slowing “more discernibly” in the second half of the year as the “current tightness in the domestic labour market eases and global inflation moderates”.
