Headline inflation rises to 1.6% in November as transport costs ease slower

Transport inflation only fell by 0.7% YoY.

Headline inflation rose to 1.6% YoY in November as transport costs eased more gradually.

Private transport costs fell slower by 0.7% YoY, outweighing the MAS core inflation decline.

According to the Department of Statistics (SingStat), core inflation eased to 1.9% YoY in November from 2.1% YoY in October.

SingStat said core inflation eased as food and services costs moderated.

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

Food inflation eased to 2.4% YoY from 2.6% YoY, whilst Services inflation slowed from 2.3% YoY to 2.2% YoY. Accommodation inflation also edged down, easing to 2.4% YoY from 2.5% YoY. 

Meanwhile, Retail & Other Goods and Electricity & Gas inflation were unchanged. 

The Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore project core inflation to "remain below 2% through to the end of 2024,” and headline inflation to come in at around 2.5%.

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