SINGAPORE’S full-year inflation in 2024 came in at 2.4 per cent, close to the official forecast, and far lower than the elevated levels in the year before, data from the Singapore Department of Statistics showed on Thursday (Jan 23).
Core inflation, which excludes private transport and accommodation, averaged 2.7 per cent last year and is within the forecast range of the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI).
The authorities had expected 2024 core inflation to be within 2.5 to 3 per cent and for headline inflation to be around 2.5 per cent.
In 2023, headline inflation averaged 4.8 per cent, while core inflation was at 4.2 per cent.
Last month, core inflation eased to 1.8 per cent, a notch below November’s 1.9 per cent, on the back of a moderation in services inflation, MAS and MTI said.
Headline inflation in December was unchanged at 1.6 per cent because lower core and accommodation inflation was offset by a milder decline in private transport costs, said the authorities.
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On a monthly basis, core inflation rose 0.5 per cent, whereas headline inflation inched up 0.3 per cent.
Services inflation eased to 1.8 per cent in December, from 2.2 per cent, as holiday expenses fell and public transport costs rose at a slower pace, MAS and MTI said.
Accommodation inflation was also lower at 2.2 per cent, from 2.4 per cent in November, due to a smaller increase in housing rents.
Private transport inflation came in at -0.1 per cent in December, compared with -0.7 per cent in the previous month. This is due to private transport costs falling at a slower pace due to a smaller decline in car prices, the authorities said.
Inflation inched up in retail and other goods to 0.3 per cent, from 0.1 per cent in November. The authorities attributed this to a smaller decline in the prices of personal effects, alongside a larger increase in the prices of medicines and health products.
Food prices also rose slightly, with inflation at 2.5 per cent in December, compared with 2.4 per cent previously. This was because of a larger increase in the prices of non-cooked food, MAS and MTI said.
In its joint statement, MAS and MTI said they expect core inflation to step down in 2025 compared to last year, owing to several factors. Globally, this includes more favourable supply conditions and an easing in global inflation, whereas domestically, nominal wage wage growth is moderating amid a more gradual rise in unit labour costs and improving productivity.
The authorities also highlighted that its forecast ranges for headline and core inflation will be updated in the central bank’s upcoming Monetary Policy Statement scheduled for 8am on Friday. The central bank’s 2025 forecast for headline and core inflation stands at 1.5 to 2.5 per cent.
