Headline inflation falls to 1.4% as private transport and accommodation costs ease

Private transportation inflation's contraction widened to -2.5%.

Headline inflation eases to 1.4% on lower private transport costs and slower accommodation inflation.

The headline inflation rate in Singapore eased to 1.4% YoY in October from 2.0% in September, according to the Department of Statistics (SingStat).

On an MoM basis, CPI-All Items fell by 0.3%. SingStat attributed the easing of inflation on a YoY basis to the steeper fall in private transport costs and slower accommodation inflation.

Private transportation inflation's contraction widened from -2.4% in September to -2.5% in October due to a larger decline in car prices.

Accommodation inflation, meanwhile, edged down from 2.7% to 2.5%. Most expenditure divisions also saw slower price movements in October, including Services (from 3.3% YoY to 2.3% YoY), Electricity & Gas (from 6.3% to 2.5%), and Retail & Other Goods (from 0.8% to 0.1%).

Meanwhile, inflation rates for Food remained at 2.6%.

The moderation in services, electricity & gas, and retail & other goods inflation also dragged MAS Core inflation down to 2.1% from 2.8% in September.

The Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore expect core inflation to "remain at around 2% through to 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%.

In 2025, the agencies expect headline and inflation to average 1.5%–2.5% and  2.5%–3.0%.