Singapore: Inflation drops to a near four-year low in October
Latest reading: Inflation dropped to 1.4% in October from September’s 2.0%, marking the lowest inflation rate since March 2021 and surprising markets on the downside. Looking at the details of the release, a slower increase in price pressures for housing and utilities outweighed a milder fall in transportation costs.
Annual average inflation fell to 2.7% in October (September: 3.0%). Meanwhile, core inflation fell to 2.1% in October from the previous month’s 2.8%.
Lastly, consumer prices dropped 0.31% from the previous month in October, contrasting September’s 0.25% rise and marking the weakest reading since January.
Panelist insight: Commenting on the reading, Jester Koh, economist at United Overseas Bank, stated:
“With the benign headline inflation outturn in Oct, we lower our 2024 headline inflation forecast to 2.3% (from 2.5% previously) and maintain our 2025 estimate at 1.7%. […] The softening of external inflation conditions since the peak in 3Q22 should continue to filter through to domestic prices via the import channel.”