City-state reviewing inflation forecasts

Rising prices: Vendors working at a fish stall in a wet market in Singapore. Core inflation rate rose to 2.1% in December on a year-on-year basis, the highest since July 2014 and topping economist forecasts. — Bloomberg

SINGAPORE: Singapore is reviewing its official inflation forecasts, authorities said yesterday, after data showed its key price gauge climbed in December by the fastest pace in nearly eight years, driven by a steep increase in air fares.

The core inflation rate – the central bank’s favoured price measure – rose to 2.1% in December on a year-on-year basis, the highest since July 2014 and topping economist forecasts.