SINGAPORE: Singapore's key consumer price gauge rose 2.1 per cent in October from a year earlier, lower than economists' forecasts and the smallest rise in almost three years, official data showed on Monday.
The core inflation rate, which excludes private road transport and accommodation costs, compared with a forecast of 2.5 per cent in a Reuters poll of economists and September's rate of 2.8 per cent.
Core inflation in October was the lowest since December 2021 when it was also 2.1 per cent. Authorities pegged the drop to moderation in services, electricity and gas, and retail and other goods inflation.
Headline inflation was 1.4 per cent in annual terms in October, lower than forecast of 1.8 per cent in the poll.
Last week, Singapore upgraded its 2024 economic growth forecast to around 3.5 per cent from a previous range of 2.0 per cent to 3.0 per cent after third-quarter growth came in stronger than expected.
The core inflation figure coming close to the central bank's guidance of 2.0 per cent by year-end leaves room for monetary policy easing at its next meeting in January, Maybank economist Chua Hak Bin said.
Chua expects the central bank to slow the rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER), through which it manages monetary policy.
The MAS left its policy settings unchanged at a review last month as inflation pressures continued to moderate and growth prospects improved.
On Monday, the central bank and trade ministry said core inflation was expected to remain around 2.0 per cent into year-end and step down further to 1.5 per cent to 2.5 per cent in 2025.