Some economists eye policy easing in October after core inflation slows more than expected in July

SOME private-sector economists believe the Monetary Authority of Singapore (MAS) could ease monetary policy settings as early as its next meeting in October, after Singapore’s core inflation slowed to a more than two-year low in July.

Core inflation, which excludes accommodation and private transport, was 2.5 per cent, data from the Department of Statistics showed on Friday (Aug 23). This was lower than the 2.9 per cent recorded in June, as well as below economists’ median estimate of 2.9 per cent. It was also the lowest rate since February 2022, when it was 2.2 per cent.

Headline inflation was 2.4 per cent, the same rate as in June, and just a nudge lower than the median forecast of 2.5 per cent by private-sector economists polled by Bloomberg. Private transport costs increased, but was offset by lower accommodation inflation, said MAS and the Ministry of Trade and Industry (MTI).