Singapore Inflation Rate Above Forecasts

Singapore’s annual inflation rate increased to 3.4% in February 2024 from an over two-year low of 2.9% in the previous month, compared to market forecasts of 3.3%, due mainly to a faster rise in housing and food prices.

Inflation accelerated for housing (3.9% vs 2.4% in January), recreation & culture (5.5% vs 4.4%), education (3.4% vs 3.2%), and food inflation rose to a three-month high of 3.8% from a 22-month low of 3.3% in January.

Meanwhile, inflation was steady for transport (at 2.3%), health care (at 4.6%), and miscellaneous goods & services (at 2.6%).

On the other hand, the annual core inflation advanced to a seven-month high of 3.6% in February from January’s 23-month low of 3.1%, beating forecasts of a 3.4% gain.

Monthly, consumer prices rose by 1.0% in February, the most in 15 months, rebounding from a 0.7% fall in the prior month.

Trade Ministry and Monetary Authority of Singapore (MAS) projected both headline and core inflation to average 2.5% to 3.5% for 2024.