S'pore core inflation cools more than expected to 3.1% in March

Overall inflation at 2'!2-year low, with prices of food and services rising at a slower pace

- Angela Tan

Singapore's core inflation eased more than expected in March as prices of food and services rose at a slower place, with overall inflation dropping to a 22-year low.

Core inflation - which excludes private accommodation and transport costs to better represent the expenses of Singapore households - fell to 3.1 per cent year on year in March. This was after Chinese New Year prices sent core inflation jumping to 3.6 per cent in February, from 3.1 per cent in January.

Compared with February, core inflation dropped 0.2 per cent, the Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore (MAS) said in their joint report.

Overall inflation slowed year on year to 2.7 per cent, from 3.4 per cent in February. This is the lowest since September 2021. The slowdown was largely due to a decline in private transport costs, in addition to lower core inflation.

Month on month, overall inflation dipped 0.1 per cent.

Both inflation indicators came in well below market forecasts. Analysts polled by Bloomberg had tipped core inflation to come in at 3.5 per cent and overall inflation at 3.1 per cent.

Maybank economist Chua Hak Bin noted that there was no discernible Taylor Swift shock to prices as airfares fell and holiday expenses rose at a slower pace. Retail and other goods inflation also eased.

American singer and songwriter Taylor Swift held The Eras Tour concerts in Singapore over six nights from March 2 to 9, serenading more than 300,000 fans, including those from overseas.