Singapore’s Consumer Inflation Overview

Singapore’s consumer inflation showed signs of cooling in 2023, meeting central bank expectations and suggesting potential monetary easing ahead.

The consumer price index (CPI) rose by 1.6% last month compared to December of the previous year, according to the Department of Statistics. This growth level was consistent with November’s performance and slightly above the median estimate of 1.55% from a Wall Street Journal poll of ten economists.

The core CPI, which excludes private road transport and accommodation costs, increased by 1.8% in December compared to a year prior. This marks a slight decrease from November’s 1.9% growth and is marginally higher than the median estimate of 1.7%.

Although the central bank of Singapore does not maintain a fixed inflation target, it sees a core inflation rate below 2% as aligned with overall economic price stability.

In 2024, average core inflation is projected at 2.7%, significantly lower than the 4.2% observed in 2023. The headline inflation rate is at 2.4% compared to 4.8% in the previous year, indicating successful policymaker efforts to manage price pressures.

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