SINGAPORE, Dec 23 — Singapore’s core inflation stood at 5.1 per cent on a year-on-year (y-o-y) basis in November 2022, unchanged from October, according to the Monetary Authority of Singapore (MAS) and the republic’s Ministry of Trade and Industry (MTI).
“This was because smaller increases in the costs of services and electricity and gas were broadly offset by a steeper pickup in the costs of retail and other goods, and food,” said MAS and the ministry in a joint statement today.
The central bank’s monitoring of core inflation measures excludes the components of ‘Accommodation’ and ‘Private Transport’.
These items are excluded as they tend to be significantly influenced by supply-side administrative policies and are volatile, said the statement.
It also said the consumer price index (CPI)-all items inflation also remained unchanged in November, relative to October, at 6.7 per cent y-o-y.
CPI-all items inflation remained unchanged as lower inflation for services as well as electricity and gas, was broadly offset by higher inflation for retail and other goods, and food.
At the same time, the decline in private transport and accommodation inflation was marginal, it said.
As for the headline inflation, it held steady as core inflation was unchanged while private transport and accommodation inflation moderated marginally.
Meanwhile, on a monthly basis, core CPI increased by 0.2 per cent and CPI-all items rose by 1.0 per cent.
On the outlook, the statement said the MAS core inflation is projected to stay elevated in the next few quarters before slowing more discernibly in the second half of 2023, as the current tightness in the domestic labour market eases and global inflation moderates.
For 2022, as a whole, CPI-all items inflation is expected to average around 6.0 per cent, and MAS core inflation around 4.0 per cent.
In 2023, taking into account all factors including the Goods and Services Tax (GST) increase, headline and core inflation are projected to average 5.5–6.5 per cent and 3.5–4.5 per cent, respectively.
Excluding the transitory effects of the GST hike, headline and core inflation are expected to come in at 4.5 – 5.5 per cent and 2.5 – 3.5 per cent, respectively.
Singapore will begin increasing its GST from January 1, 2023, from seven per cent to eight per cent.
There are upside risks to the inflation outlook, including fresh shocks to global commodity prices and more persistent-than-expected external inflation, said the statement.
— Bernama
