Both the headline and core inflation figures came in lower than analysts’ expectations, below the Bloomberg consensus forecast of 3.1% and 3.5% respectively. Headline CPI is the lowest since September 2021 and marked the largest percentage point decline since January this year while core CPI was the lowest since January this year as well.
Analysts have made various predictions on Singapore’s overall inflation numbers for the year after the country’s CPI-All items inflation – or headline inflation – stood at 2.7% for the month of March. Monetary Authority of Singapore (MAS) core inflation, which excludes private accommodation and transport costs, moderated to 3.1% in the same month.
The lower headline figure was due to lower private transport prices, which fell by 0.3% y-o-y due to lower certificate of entitlement (COE) premiums while the lower core inflation number stood due to lower food prices and services costs. Food prices fell due to a smaller increase in non-cooked food items after the Chinese New Year (CNY) holidays while services costs fell from lower airfares and a slower increase in holiday expenses.
