Singapore: Inflation falls to the lowest level in more than two years
February 25, 2013
In January, consumer prices rose 0.2% over the previous month, which was below the 0.7% rise observed in December. According to Statistics Singapore, prices increased the most in the education and stationery as well as in the food categories.
Owing to the higher comparison base last year due to the Chinese New Year, annual inflation fell from 4.3% in December to 3.6% in January, which was below market expectations that had inflation edging down to 4.0%. In fact, the reading represented the lowest inflation level observed since October 2010. In addition, annual average inflation inched down from 4.6% in December to 4.5% in January.
Meanwhile, the Monetary Authority of Singapore's (MAS) annual core inflation measure, which excludes the costs of accommodation and private road transport, fell from 1.9% in December to 1.2% in January.
The MAS expects average inflation to range between 3.5% and 4.5% 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%.