Singapore August core inflation rises 3.4%, seen easing

SINGAPORE  – Singapore’s key consumer price gauge rose 3.4 percent in August, almost matching economists’ forecasts, and easing compared with July’s figures due to lower inflation for services, food, retail and other goods, official data showed on Monday.

The core inflation rate – which excludes private road transport and accommodation costs – climbed 3.4 percent year-on-year in August, almost in line with a forecast in a Reuters poll of economists of 3.5 percent, and lower than the 3.8 percent seen in July.

“Global supply chain frictions have largely eased, and food commodity prices remain below year-ago levels,” said a joint statement by the Monetary Authority of Singapore (MAS) and the trade ministry.

READ: Singapore’s fight against inflation still on amid uncertain growth outlook -central bank

Headline inflation in August was up 4 percent from the same month last year, as forecast in the poll.

“Consumer price inflation in Singapore’s major trading partners has also been on a gradual moderating trend,” the authorities added.

Economists are generally expecting MAS, the central bank, to keep monetary policy settings unchanged in a scheduled review next month, on a weak growth outlook and still-elevated but easing inflation.