Singapore’s August Inflation at 3.4%, Eases from July, as Supply Chain Challenges Diminish

In August, the core inflation rate, excluding private road transport and accommodation costs, rose by 3.4% year-on-year. This figure closely mirrored the 3.5% forecast by economists in a Reuters poll and was lower than the 3.8% recorded in July.

According to publicly available data, Singapore’s primary consumer price index registered a 3.4% increase in August, closely aligning with economists’ predictions. This figure also represented a slight moderation from July’s data, primarily due to reduced inflation rates in various sectors, including services, food, and retail, as per official reports released on Monday.

In August, the core inflation rate, excluding private road transport and accommodation costs, rose by 3.4% year-on-year. This figure closely mirrored the 3.5% forecast by economists in a Reuters poll and was lower than the 3.8% recorded in July.

A joint statement by the Monetary Authority of Singapore (MAS) and the trade ministry noted, “Global supply chain frictions have largely eased, and food commodity prices remain below year-ago levels.” These factors have contributed to the moderation in inflation.

The headline inflation rate for August stood at 4%, consistent with the expectations of economists surveyed.

Furthermore, the authorities highlighted that consumer price inflation in Singapore’s key trading partners has been gradually declining, aligning with the overall trend.

Economists generally anticipate that the Monetary Authority of Singapore (MAS), the nation’s central bank, will maintain its current monetary policy settings during the scheduled review next month. This stance is expected to persist due to a weaker growth outlook and persistent but gradually diminishing inflation pressures.

In summary, Singapore’s recent inflation figures suggest a degree of stability and align with broader trends in the global economy. The authorities are closely monitoring these economic indicators to make informed decisions about future monetary policy adjustments.