Singapore Inflation Eases Unexpectedly To 1.2%

(RTTNews) - Singapore's consumer price inflation softened unexpectedly at the start of the year, data published by the Monetary Authority of Singapore and the Ministry of Trade and Industry showed on Monday.

The consumer price index rose 1.2 percent on a yearly basis in January, slower than the 1.5 percent increase in December. Meanwhile, economists had expected inflation to rise to 2.2 percent.

Data showed that core inflation also eased to 0.8 percent in January from 1.7 percent in December.

The slowdown in overall inflation in January was on the back of lower inflation across most major categories of the CPI basket, the MAS said.

Services inflation eased to 1.0 percent from 1.6 percent, largely due to a fall in the costs of general, vocational and higher education, as well as outpatient and inpatient care services.

Similarly, food inflation moderated to 1.5 percent from 2.3 percent, and inflation based on accommodation slowed to 1.6 percent from 2.1 percent on account of smaller increases in both housing rents and housing maintenance and repair costs.

Electricity and gas prices were 2.9 percent cheaper compared to last year, while private transport costs grew 2.8 percent amid higher car prices.

Looking ahead, Singapore's imported inflation is expected to remain moderate, reflecting favourable supply projections in key food commodity markets and forecasts of declines in global oil prices, the MAS said.

On the domestic front, unit labour costs are projected to rise gradually as nominal wage growth eases and productivity increases.

CPI-All Items inflation is expected to average 1.5-2.5 percent for 2025 amid an anticipated pickup in private transport inflation. MAS core inflation is projected to average 1-0-2.0 percent for the current year.