Singapore: Inflation picks up but remains muted in February
March 23, 2018
Consumer prices increased 0.5% over the previous month in February, contrasting January’s 0.2% month-on-month decrease. The result marked the first increase in prices on a month-on-month basis in three months. According to data released by Statistics Singapore, the pick-up in prices was primarily driven by higher prices for housing and utilities, clothing and footwear, and recreation and culture.
In February, inflation also came in at 0.5%, which was up from the prior month’s flat reading and matched market expectations. Despite the increase in inflation, annual average inflation was stable at the previous month’s reading of 0.5%.
Finally, the Monetary Authority of Singapore’s (MAS) core inflation measure, which omits the costs of accommodation and private road transport, also picked up pace. Core inflation in February came in at 1.7%, up from the 1.4% seen in January.
Singapore Inflation Forecast
FocusEconomics Consensus Forecast panelists expect inflation to average 1.0% in 2018, which is unchanged from last month’s estimate. For 2019, the panel sees average inflation of 1.4%.
Author: Jan Lammersen, Economist