Economists trim inflation forecasts after Singapore’s October core, headline inflation reach lowest since 2021

SEVERAL private-sector economists have cut their Singapore 2024 and 2025 inflation forecasts, after October’s readings decelerated more than expected to their lowest prints since 2021.

Year on year (yoy), October’s core inflation – which excludes accommodation and private transport – was 2.1 per cent, data from the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) showed on Monday (Nov 25). This was a sharp fall from September’s 2.8 per cent, and was the lowest reading since December 2021, when it was also 2.1 per cent.

The slide was due to a moderation in services, electricity and gas, and in retail and other goods inflation. The reading was also lower than the 2.5 per cent median forecast in a Bloomberg poll of private-sector economists.