In October, Singapore's core inflation rate fell for the first time in eight months, providing policymakers justification not to tighten monetary policy in the face of rising economic growth concerns.
According to a statement released by the Monetary Authority of Singapore and the Ministry of Trade and Industry on Wednesday, core inflation, which excludes private transportation and lodging and is closely monitored by the central bank, jumped 5.1% from a year earlier. That was slower than the consensus estimate of 5.3% growth by experts, as well as September's rate, which was the highest since November 2008.
According to the statement, the decrease in core inflation was driven by lesser rises in the costs of electricity and gas, retail and other goods and services.
According to the statement, the all-items inflation rate is anticipated to average about 6% in 2022, while the core inflation rate is anticipated to average around 4%. As a result of the proposed rise in goods and services tax, both measures are anticipated to average between 5.5% and 6.5% and 3.5% and 4.5% in 2023.
According to the statement, core inflation is expected to remain robust for the next few quarters before "slowing more noticeably" in the second half of 2023 as the current tightness in the local labor market eases and global inflation moderates.
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