Singapore’s key consumer price gauge rose 5.1 percent in December, slightly higher than forecast, official data showed on Wednesday.
The core inflation rate — which excludes private road transport and accommodation costs — was unchanged from the 5.1 percent rise in November. A Reuters poll of economists had forecast a 5 percent increase in December.
Headline inflation eased to 6.5 percent year-on-year in December, from 6.7 percent in November. For 2022 as a whole, core inflation averaged 4.1 percent, higher than the 0.9 percent recorded in 2021.
Meanwhile, headline inflation came in at 6.1 percent last year, up from 2.3 percent in 2021. The central bank had earlier said core inflation was likely to stay at about 5 percent for the early part of 2023.
The Monetary Authority of Singapore, forecast for 2023 as a whole, taking into account all factors including the GST increase, headline, and core inflation are projected to average 5.5–6.5% and 3.5–4.5%, respectively. Excluding the transitory effects of the GST hike, headline and core inflation are expected to come in at 4.5– 5.5% and 2.5–3.5%, respectively. There are upside risks to the inflation outlook, including fresh shocks to global commodity prices and more persistent-than-expected external and domestic sources of inflation.
