Singapore: Inflation holds stable in December
Latest reading: Inflation held steady at November’s 1.6% in December, slightly above market expectations but below the ASEAN average. Looking at the details of the release, stronger food and transport price pressures offset softer inflation for housing and utilities prices.
The trend pointed down slightly, with annual average inflation coming in at 2.4% in December (November: 2.5%). Meanwhile, core inflation fell to 1.8% in December from the previous month’s 1.9%.
Finally, consumer prices increased 0.35% over the previous month in December, accelerating from November’s 0.03% rise. December’s uptick was the highest reading since August.
Panelist insight: Commenting on the release, Jester Koh, economist at United Overseas Bank, stated:
“While the recent inflation readings reflect a normalization […] and a dissipation of broad-based price pressures, upside risks to services inflation persist owing to wage pressures associated with the PWM especially so if not accompanied by corresponding improvements in labour productivity.”