Singapore inflation holds steady at 3.1%

Singapore’s core inflation rate remained unchanged at 3.1 per cent year-on-year (y-o-y) in May compared to the previous month, according to official data released on Monday.

Headline inflation, which includes all goods and services, also edged slightly higher in May, reaching 3.1 per cent year-on-year, from 2.7 per cent in April.  This was driven by higher private transport inflation.

Services inflation edged up 3.6 per cent in May on the back of a larger increase in holiday expenses and a smaller decline in airfares.

Food inflation was broadly unchanged at 2.8 per cent similar to the previous month, reflecting stable food services inflation, even as non-cooked food inflation registered a modest increase.

Global energy and food prices have stabilised, while import costs for manufactured goods continued to decline. Tourism-related services are expected to see inflation softening as travel industries worldwide restore capacity.

In 2024, overall inflation is forecasted to be between 2.5-3.5 per cent. Excluding the temporary impact of the one percentge point increase in Goods and Services Tax (GST) to 9 per cent, inflation is expected to reach 1.5-2.5 per cent.

Attribution: Monetary Authority of Singapore statement

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