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.

A Reuters poll of economists had forecast a 1.7% increase.

Singapore’s central bank tightened its monetary policy in October, delivering its first such move in three years, amid mounting cost pressures.

Its next policy review is scheduled for April when it is widely expected by economists to tighten further.

Yesterday’s data showed headline inflation rose by 4%, a near nine-year high, beating economists’ forecast of 3.75%.

Steep increases in air fares and Covid-19 testing costs under Singapore’s quarantine-free travel schemes were a major factor in December’s price jump.

There remains significant uncertainty surrounding the outlook for inflation in the near term, including from the costs of air travel and commodity prices such as food and oil, the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) said in a statement.

“Given the recent stronger-than-projected inflation outturns, including the sharp uptick in air fares, MAS and MTI are reviewing the current forecast ranges for CPI-All Items inflation and MAS Core Inflation in 2022,” they said.

The government had a previous forecast for 2022 headline prices to average 1.5%-2.5% and core inflation to increase to 1%-2%. For 2021, core inflation came in at 0.9% and headline prices rose to 2.3%. — Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Singapore , economy , inflation , prices ,

   

Next In Business News

Ekuinas’ total cumulative investment at RM4.4bil in FY21
Inflation low and under control due to subsidies, price controls: Mustapa
Bank Indonesia keeps rates unchanged to underpin recovery
Asia stocks skid with U.S. futures, euro holds gains
Oil prices fall on concerns over recession, China Covid curbs
Citi Malaysia bags best bond award in Asia by Asset Magazine
Pestech partners French company to explore green hydrogen projects
Sime Darby's net profit falls to RM244mil in 3Q
FBM KLCI descends into the red as negative sentiment continues
KNM to dispose of Borsig in RM1.03bil deal

Others Also Read