Singapore April core inflation rises 5%, beating forecast

SINGAPORE  – Singapore’s key consumer price gauge rose 5 percent in April, higher than forecast, official data showed on Tuesday.

The core inflation rate – which excludes private road transport and accommodation costs – rose 5 percent year-on-year in April. A Reuters poll of economists had forecast a 4.7-percent increase in April.

Lower inflation for electricity, gas, food, retail and other goods was offset by higher inflation for travel-related services, according to a joint statement by the Monetary Authority of Singapore (MAS) and the trade ministry.

“Global supply chain frictions have eased, and consumer goods inflation in the advanced economies has moderated, even as overall core inflation is still high,” they said.

Headline inflation was up 5.7 percent year-on-year in April, compared with a forecast 5.5 percent increase in a Reuters poll.

The central bank said core inflation was expected to average 3.5% to 4.5% while headline inflation was forecast at 5.5 percent to 6.5 percent this year.

MAS left its monetary policy settings unchanged last month, reflecting concerns about Singapore’s growth outlook and surprising economists, who had expected another round of tightening due to elevated inflation.

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https://business.inquirer.net/395936/singapore-unexpectedly-leaves-monetary-policy-unchanged-as-risks-grow