Singapore's Inflation Eases to 2.9% in January, Lowest in Over Two Years

The dip in inflation, including a fall in core inflation to 3.1%, signals potential for monetary policy adjustments.

January's inflation rate in Singapore slowed to 2.9%, marking the lowest rate in more than two years.
Core inflation, excluding accommodation and private transport costs, also decreased to 3.1% from 3.3% in December.
The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) anticipate a temporary increase in core inflation in February due to Chinese New Year spending.
MAS and MTI maintain their projection for 2024, expecting both headline and core inflation to average between 2.5% to 3.5%.
The unexpected drop in inflation rates opens the door for the central bank to potentially ease monetary policy settings sooner than anticipated.