Singapore Core Inflation Rises to 1.2% in October, Surpassing Market Expectations

Singapore’s core inflation accelerated more than expected in October, highlighting renewed price pressures after months of easing. Official data released on Monday showed that the core consumer price index—which excludes private road transport and accommodation costs—rose 1.2% year-on-year, a notable jump from 0.4% in September. This also exceeded economists’ median forecast of 0.7%, according to a Reuters poll.

The higher core inflation reading suggests that certain domestic cost pressures remain firm, driven largely by services and essential goods categories. Despite recent signs of cooling in global commodity prices, factors such as labor costs, imported inflation, and seasonal spending may have contributed to October’s uptick.

Headline inflation, which measures the overall increase in consumer prices across all categories, also climbed 1.2% in October from a year earlier. This was higher than the expected 0.9%, indicating a broader increase in prices for households. While still moderate by global standards, the rise reinforces the need for careful monitoring as Singapore navigates a complex economic environment marked by external uncertainties and fluctuating global demand.

The Monetary Authority of Singapore (MAS), however, has maintained a steady outlook. At its most recent policy review earlier last month, the central bank kept its monetary settings unchanged, pointing to continued stability in the broader economy. MAS forecasts core inflation to average around 0.5% for 2025, reflecting expectations of moderated price growth as external cost pressures ease. For 2024, headline inflation is projected to remain between 0.5% and 1.0%, suggesting that overall consumer prices will stay relatively contained compared to previous years.

As Singapore moves into the final months of the year, businesses and consumers alike will be watching upcoming data releases closely. The latest figures hint at a delicate balance between steady economic recovery and persistent cost pressures, making inflation developments a key area of focus for policymakers and market participants.