Inflation eases to 2.9% YoY in January

In December 2023, headline inflation rose 3.7% YoY.

The rate of price increase slightly slowed to 2.9% YoY in January, data from the Department of Statistics (SingStat) showed.

In December 2023, inflation was at 3.7%. On an MoM  basis, CPI-All Items fell by 0.7%

The smaller expansion of the headline or consumer price index (CPI)-all items inflation was due to slower core inflation and declines in accommodation and private transport inflation.

In January, core inflation fell to 3.1% YoY from 3.3% in December 2023. 

The Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore (MAS) expect core inflation to pick up in February due to the effects of the Lunar New Year.

“Thereafter, core inflation should resume a gradual moderating trend over the rest of the year as import cost pressures continue to decline and tightness in the domestic labour market eases,” the agencies stated.

Meanwhile, accommodation and private transport inflation fell to 2.1% YoY from 4.1% YoY and 2.9% YoY from 5.0% YoY, respectively.

Expenditure divisions which also saw a decline in the rate of price increase were services (3.3% YoY from 3.9% YoY) and food (3.3% YoY from 3.7% YoY).

On the other hand, retail and other goods (1.4% YoY from 1.1% YoY) and electricity and gas (5.3% YoY vs 1.3% YoY) saw faster price movements in January. 

For 2024, MTI and MAS expect headline and core inflation to average 2.5%-3.5%.

Excluding the transitory effects of the 1%-point increase in the GST rate to 9%, the agencies expect headline and core inflation to come in at 1.5%-2.5%.