SINGAPORE: Singapore’s main inflation stayed at 3.1 per share in May, unchanged from April and March.
According to data released on Monday ( Jun 24 ), from the Monetary Authority of Singapore ( MAS ) and the Ministry of Trade and Industry ( MTI), an increase in services inflation was offset by a decrease in prices for goods like groceries and gas.
Core inflation, which excludes lodging and secret transportation, increased by 0.1 % in April on a month-on-month basis.
However, consumer price index, or article prices, went up to 3.1 per cent yr- on- year , in May, from 2.7 per share in April, driven by higher secret transport inflation.
On a fortnight- on- month base, article prices increased by 0.7 per share.
Electric and gas prices fell from 7.6 per cent , to 6.9 per share due to a smaller increase in electricity costs.
Retail and other goods inflation decreased from 1.6 % to 1.5 %. The price of individual effects, alcoholic beverages, and nicotine are all on the rise, according to MAS and MTI, which are slower.
On the back of a “larger increase in holiday expenses and a smaller decline in airfares,” services inflation increased slightly, from 3.5 %   to 3.6 %.
Food prices remained at 2.8 per cent, reflecting firm food services prices, yet though non- cooked meals inflation registered a “modest increase”.
Stay inflation eased somewhat from 3.5 per cent , to 3.4 per cent according to smaller rises in housing prices.
OUTLOOK
According to MAS and MTI, international strength and food commodity prices have remained moderate in recent months. The import charges of Singapore’s middle and final-made goods have also decreased significantly.
The offer chain’s involvement with outside journey has remained stable, but this should change as the supply chain recovers gradually over the course of the year.
As buy price pressures continue to decline and domestic labor market tension ease, “MAS key inflation is expected to remain on a continuous moderating pattern for the rest of the year and decrease more noticeably in Q4 2024,” according to MAS and MTI.
In addition, the authorities anticipate that the projected COE source will increase in 2024, allowing for a decrease in secret transportation prices from last year.
As the source of housing products increases over the course of the time, hire prices may continue to decrease.
In 2024, MAS and MTI predicted article and core inflation to be on average between 2.5 and 3.5 %, respectively.
Headline and core inflation are anticipated to increase by 1.5 % to 2.5 %, excluding the transitory effects of the 1%-point increase in the GST rate.
They cautioned that the inflation perspective faces risks because new geopolitical shocks, severe weather events, and additional transportation disruptions could cause higher prices for global food and product prices as well as shipping costs.
” Domestically, a stronger- than- expected employment market could even result to a are- acceleration in income growth”, said MAS and MTI.
” Conversely, an unexpected weakening in the global economy could induce a greater easing of cost and price pressures”.