SINGAPORE: Singapore's annual core inflation rate was unchanged in May from April, official data showed on Monday, as an increase in services prices was offset by lower electricity and gas and retail and other goods inflation.
The core inflation rate, which excludes private road transport and accommodation costs, came in at 3.1% in May from a year ago, slightly higher than the 3.0% forecast by a Reuters poll of economists and unchanged from April and March.
Headline consumer prices in May were up 3.1% from the same month last year, driven by higher private transport prices. The rate was just above than the 3.05% forecast in the poll and compared with an annual 2.7% rise in April.
Core inflation is expected to stay on a gradual moderating trend over the rest of the year and step down more discernibly in fourth quarter of this year, the trade ministry and Monetary Authority of Singapore (MAS) said in a joint statement.
They maintained their 2024 headline and core inflation projections, expecting the measures to average between 2.5% to 3.5%.
"However, risks to the inflation outlook remain," they said.
"Fresh geopolitical shocks, adverse weather events and further transportation disruptions around the world could put upward pressure on global energy and food commodity prices, as well as shipping costs," they added.
MAS, which uses exchange rate as its primary tool, is scheduled to next review its policy settings in July.
The central bank has left monetary policy settings unchanged for four consecutive meetings through April.
In May, the trade ministry maintained its economic growth forecast for 2024 at 1.0% to 3.0%.
Gross domestic product grew 1.1% last year, moderating from 3.8% in 2022. - Reuters
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