Inflation eases to 6.3% in February

MTI attributed the moderation to lower private transportation inflation.

The rate of price increase eased to 6.3% in February 2023, data from the Ministry of Trade and Industry (MTI) and Monetary Authority of Singapore (MAS) showed. In January 2023, inflation was at 6.6%.

The moderation of the headline or consumer price index (CPI)-all items inflation was on the back of lower private transport inflation (12.1% from 14.3%), services (3.9% from 4.2%), and accommodation (4.9% from 5.0%). 

On the other hand, price movements picked up for electricity and gas (12.1% from 11.5%).

Food inflation was unchanged at 8.1%$ as a steeper increase in non-cooked food prices was offset by a smaller increase in the prices of prepared meals. 

The lower inflation for services, food and retail & other goods, as well as the GST rate hike, pushed the MAS core inflation up to 5.5% YoY in January from 5.1% in December 2022. 

Given the lower services inflation and higher inflation for retail & other goods and electricity & gas, MAS core inflation came in at 5.5% YoY, unchanged from January.

For 2023, MAS and MTI expect headline inflation and core inflation to average 5.5–6.5% and 3.5–4.5%, respectively.