Singapore's core inflation eases for first time since Feb

Dip comes on the back of smaller hikes in prices of energy, retail and services

- Claire Huang

Core consumer prices in Singapore eased in October - the first dip since February this year in what some economists say is a sign that inflation here may have peaked.

The better-than-expected data comes on the back of smaller hikes in prices of electricity and gas, as well as retail and other goods and services.

Core inflation, which excludes costs of private transport and accommodation and reflects the expenses of Singapore households more accurately, eased to 5.1 per cent year on year. This was lower than the 5.3 per cent rate in September, and matches the figure in August.

October's headline consumer price index (CPI) or overall inflation came in at 6.7 per cent, led by an easing in private transportation inflation, the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) said on Wednesday. This was lower than September's 7.5 per cent.

October's core inflation and headline CPI are both lower than Bloomberg's forecast of 5.3 per cent and 7.1 per cent, respectively.

The respite comes as demand conditions in major economies soften, supply chain frictions continue to ease, and prices of energy and food commodities pull back from the peaks reached earlier in the year.