AFTER reaching a near-decade high in January, Singapore's core inflation could possibly exceed 3 per cent by the second quarter of this year, making a second round of monetary policy tightening this year likely, economists said.

Core consumer price index (CPI), which excludes accommodation and private transport, reached 2.4 per cent in January, outpacing the previous month's 2.1 per cent, according to data from the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) on Wednesday (Feb 23).

Although the number came in slightly below market expectation, this is the highest level the Republic has seen since September 2012. Headline inflation stayed flat at 4 per cent, although this is a 9-year high.