[SINGAPORE] Core and headline inflation slowed in August, contrary to economists’ expectations that both would hold steady at their July rates.
The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) maintained their forecasts but noted that the outlook remains uncertain.
Core inflation, which excludes accommodation and private transport, eased to 0.3 per cent in August. This was driven by a moderation in services inflation, said the Singapore Department of Statistics on Tuesday (Sep 23).
Private-sector economists had expected it to hold steady at July’s 0.5 per cent rate, a Bloomberg poll indicated.
Headline inflation also slowed to 0.5 per cent, down from 0.6 per cent in July, where economists had forecast it would stay.
On a month-on-month basis, the core inflation grew 0.1 per cent, while the all-items inflation rose 0.5 per cent.
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MTI and MAS kept their 2025 full-year core forecast range at 0.5 to 1.5 per cent for both core and headline inflation, but added: “The inflation outlook in the quarters ahead is subject to both upside and downside risks.”
They added that geopolitical shocks could lift imported energy and shipping costs abruptly.
“Conversely, should global and domestic growth be more hesitant and weaker than anticipated, core inflation could stay low for longer.”
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Key CPI categories
In August, most CPI categories experienced lower inflation or outright declines in prices.
Electricity and gas prices fell by 5.7 per cent, deepening from a fall of 5.6 per cent in July, due to a larger decline in electricity prices.
Retail and other goods prices slipped 0.2 per cent in August, easing from July’s 0.5 per cent decline, as higher clothing and footwear prices offset a smaller drop in telecommunication equipment costs.
Accommodation inflation eased to 0.4 per cent, from 0.5 per cent in July, as a result of smaller increases in housing rents.
Services inflation likewise eased to 0.4 per cent, from 0.7 per cent in July, due to a steeper decline in the costs of holiday expenses, airfares and inpatient services.
Meanwhile, private transport inflation rose to 2.4 per cent, from 2.1 per cent, on account of a larger increase in car prices, as well as a smaller decline in petrol prices.
As for food inflation, it held steady at 1.1 per cent as a slight moderation in non-cooked food inflation was offset by a mild pickup in food services inflation.
