Singapore's core inflation rises 4.2% in June, as forecasted

July 24, 2023 (MLN): Singapore's key consumer price gauge rose 4.2% in June, matching economists' forecasts, official data showed on Monday, as Reuters reported.

Inflation was lower as food and energy prices eased, according to a joint statement by the Monetary Authority of Singapore (MAS) and the trade ministry.

"Global supply chain frictions, energy and food commodity prices have moderated," they said.

The core inflation rate, which excludes private road transport and accommodation costs rose 4.2% year-on-year in June.

Headline inflation was up 4.5% year-on-year in June.

Authorities said core prices should moderate further in the year's second half.

According to the government, core inflation was expected to average 3.5% to 4.5% while headline inflation was forecast at 4.5 to 5.5% this year.

Economists are generally expecting MAS to keep monetary policy settings unchanged in the next review in October on a weak growth outlook and the still elevated but easing inflation.

The MAS left the monetary policy settings unchanged in April, after tightening five times in a row since October 2021, reflecting concerns over the city-state's growth outlook.

Singapore's economy narrowly dodged a recession in the second quarter of 2023, preliminary data showed, though economists cautioned of a possible downward revision in final data.

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