Headline inflation eases to 2% YoY in September on lower transport costs

Private transportation inflation fell to -2.4% YoY.

The headline inflation rate in Singapore eased to 2.0% YoY in September from 2.2% in August, according to the Department of Statistics (SingStat).

On an MoM basis, CPI-All Items rose by 0.3%.

SingStat attributed the easing of inflation on a YoY basis to the steeper fall in private transport costs, which more than offset the increase in core inflation.

MAS core inflation expanded to 2.8% YoY from 2.7% YoY in August,

Meanwhile, private transportation inflation fell from -1.0% in August to -2.4% in September due to a larger decline in car prices and lower petrol prices.

Most expenditure divisions also saw slower price movements in September, including  Accommodation (from 2.9% YoY to 2.7% YoY), Food (from 2.7% to 2.6%), and Electricity & Gas (from 6.6% to 6.3%).

On the other hand, Retail & Other Goods inflation increased from 0.4% to 0.8% YoY.

Meanwhile, inflation rates for Services remained unchanged at 3.3%.

The Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore (MAS) expect core inflation to " stay on a gradual moderating trend and reach around 2% by the end of 2024.”

For 2024, MTI and MAS expect headline inflation to reach 2.5% and core inflation to average 2.5%-3.0%.