Singapore: Inflation drops to more than two-year low in March
April 23, 2013
In March, consumer prices fell 0.5% over the previous month, which contrasted the 1.0% increase observed in February. According to Statistics Singapore, prices decreased the most in transport, food as well as in recreation.
As a result of the monthly reading, annual inflation fell from 4.9% in February to 3.5% in March, which was slightly below market expectations that had inflation falling to 3.6%. In fact, the reading represented the lowest inflation level observed in 29 months. In addition, annual average inflation inched down from 4.5% in February to 4.4% in March.
Meanwhile, the Monetary Authority of Singapore's (MAS) annual core inflation measure, which excludes the costs of accommodation and private road transport, edged down from 1.9% in February to 1.7% in March.
The MAS expects average inflation to range between 3.0% and 4.0% in 2013. FocusEconomics Consensus Forecast panellists expect inflation to average 3.6% in 2013, which is unchanged from last month's estimate. For 2014, the panel sees average inflation at 3.2%.