Singapore: February marks the lowest level of inflation in four years
Latest reading: Inflation edged down to 0.9% in February, below January’s 1.2%. February’s result represented the weakest inflation rate since February 2021. The drop was due to lower food and transport inflation.
Accordingly, the trend pointed down slightly, with annual average inflation coming in at 2.0% in February (January: 2.2%). Meanwhile, core inflation edged down to 0.6% in February from the previous month’s 0.8%.
Finally, consumer prices increased 0.77% over the previous month in February, swinging from the 0.75% drop recorded in January. February’s figure was the highest reading since May 2024.
Outlook: Our Consensus expects inflation to stabilize above current levels in the upcoming quarters. That said, in 2025 as a whole, price pressures will drop from 2024’s level on softer growth in private spending and wages, moderating oil prices and the strength of the local currency. That said, despite the downward trend in inflation seen since 2023, inflation has yet to return to its pre-pandemic levels. The U.S.’ recent adoption of protectionist measures poses an upside risk to inflation due to production inefficiencies, greater import costs and potential retaliatory measures.