Singapore's Core Inflation Hits 3-Year Low in November 2024
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Singapore's core inflation for November 2024 was recorded at 1.9% year-on-year (y/y), marking the lowest level in almost three years. This decline in inflation has been attributed to several factors, including a moderation in price pressures across various sectors.The core Consumer Price Index (CPI), which excludes private transport and accommodation costs, provides a clearer picture of underlying inflation trends by focusing on more stable components of consumer spending. The recent reduction in core inflation reflects a broader easing of price pressures within the economy.In addition to the core inflation data, the headline inflation rate for November was 1.6% y/y, which was lower than the 1.8% expected by analysts. This indicates a general slowdown in overall price increases, contributing to the easing of inflationary pressures.The Monetary Authority of Singapore (MAS) has been monitoring these trends closely. The slowing inflation has created room for potential easing of monetary policy in the future, although the central bank may choose to wait until later in 2025 to make any significant changes.Overall, the decline in inflation is a positive development for Singapore's economy, indicating that the cost of living pressures on consumers are easing. This could potentially lead to increased consumer confidence and spending, which would support economic stability and growth in the coming months.