LifeStyle Updates : S’pore core inflation falls sharply in January to 0.8% as price rises ease, CPI is rebased

Source:

https://www.straitstimes.com/business/singapore-core-inflation-falls-sharply-in-january-to-0-8-lowest-since-2021

Apple Intelligence:

• Core Inflation Rate: Singapore’s core inflation rate decreased to 0.8% year-on-year in January, the lowest since June 2021.

• Inflation Rate Components: The decline is attributed to a moderation in goods and services prices and the fading impact of past GST hikes.

• Headline Inflation Rate: Overall inflation eased to 1.2% year-on-year in January, surpassing economists’ expectations.

• Inflation Forecast: Singapore’s imported inflation is expected to remain moderate, with unchanged 2025 inflation forecasts.

• Core Inflation Trend: Core inflation experienced a sharp decline, driven by drops in electricity and gas, accommodation, and services.

• Monetary Policy Implication: The sharp fall in inflation suggests a potential easing of monetary policy, possibly at the April meeting.

• Overall Inflation Trend: Inflation eased in January, with electricity and gas prices falling significantly.

• Price Changes in Specific Categories: Retail and other goods prices fell, while private transport costs rose due to higher car prices.

• Inflation Rates in Different Sectors: Food inflation moderated, services inflation dipped, and accommodation inflation eased.