By Bing Hong Lok

Singapore’s Inflation Rate Eases

SINGAPORE (Reuters) – Singapore’s annual core inflation rate eased to 0.6% in February, data showed on Monday. An analyst noted this marked the lowest reading in nearly four years, suggesting a potential easing at the central bank’s policy review next month.

The core inflation rate, which excludes private road transport and accommodation costs, fell below the median forecast of 0.7% from a Reuters poll and from January’s 0.8% reading.

This is the lowest annual rate since 0.6% in June 2021, as indicated by data from Statistics Singapore.

Headline inflation stood at 0.9% in annual terms in February, aligning with economists’ forecasts.

OCBC economist Selena Ling stated that a policy easing during April’s review was feasible. The Monetary Authority of Singapore has forecast core inflation to be between 1.0% and 2.0% this year, alongside noted downside risks to growth.

Ling commented on the uncertainty regarding the inflationary impact on economies outside the U.S. due to fluctuating tariff announcements: “For now, central banks may prefer to err on the side of downside growth risks.”

Notably, the MAS loosened monetary policy in January for the first time since 2020.

A recent survey published by the central bank indicated that economists project Singapore’s growth at 2.6% this year, which is near the midpoint of the trade ministry’s estimate of 1.0% to 3.0%. Additionally, the median forecast for core inflation was 1.5%.