Singapore’s core inflation slows in Jan ’25

Singapore’s core inflation rose 0.8 per cent year-on-year (YoY) in January, the slowest pace in over three years and below the 1.5 per cent forecast by economists, official data showed on Monday. Headline inflation stood at 1.2 per cent, also lower than expectations of 2.15 per cent.

The consumer price index (CPI) was rebased to 2024 from 2019, with December’s headline inflation revised to 1.5 per cent from 1.6 per cent. Core inflation has eased from a peak of 5.5 per cent in early 2023.

OCBC economist Selena Ling said the softer-than-expected inflation could prompt further monetary policy easing in April. Singapore’s central bank had already loosened policy last month for the first time since 2020. The country expects GDP growth to moderate to 1–3 per cent in 2025, with core inflation projected at 1–2 per cent.

Attribution: Reuters

Subediting: M. S. Salama