Singapore: Inflation reaches lowest level in over four years
March 24, 2014
In February, consumer prices fell 0.1% over the previous month, which contrasted the 0.1% increase recorded in January. According to Statistics Singapore, February's increase came on the back of higher prices for food and for housing, which offset lower prices for transport and communication. Annual inflation fell from 1.4% in January to 0.4% in February, reaching the lowest level since January 2010. The figure undershot the 0.8% the market had expected. Annual average inflation decreased from 2.2% in January to 1.8% in February. The Monetary Authority of Singapore's (MAS) annual core inflation measure, which excludes the cost of accommodation and private road transport, fell from 2.2% in January to 1.6% in February. The MAS expects average inflation to be between 2.0% and 3.0% in 2014. FocusEconomics Consensus Forecast panelists expect inflation to average 2.8% in 2014, which is down 0.1 percentage points from last month's estimate. For 2015, the panel sees average inflation at 3.0%.
Author: Dirina Mançellari, Senior Economist