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Core Inflation Eases to 2.9% in Singapore for June 2024
Singapore's core inflation eased to 2.9% in June 2024, down from 3.1% in May, as transport and retail prices cooled.
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Daily.SG Newsroom
Archive · 23 Jul 2024
KEY POINTS
- ●MAS Core Inflation dropped to 2.9% in June from 3.1% in May
- ●Lower vehicle prices and petrol costs drove the easing in private transport expenses
- ●Declining clothing and footwear prices, plus slower rent and holiday cost increases, also helped ease price pressures
- ●Core inflation is forecast to trend gradually lower for the rest of 2024, averaging 2.5% to 3.5%
- ●Global events and geopolitical factors pose risks to the inflation outlook
IN SIMPLE TERMS
The cost of things you buy every day in Singapore went up a bit more slowly in June than in May. This happened mainly because car and petrol prices fell, and clothes and shoes cost less. It's a small bit of good news for people's wallets.
WHY IT MATTERS
Lower inflation means households' money goes a bit further when buying goods and services.
Easing price pressures may support consumer confidence and spending in the near term.
Slower rent and transport price increases provide relief to major household expenses.
Inflation forecasts guide monetary policy decisions and business planning for the rest of the year.
WHERE DO YOU STAND?
Does the easing of inflation to 2.9% feel like real relief for your household budget?
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- The MAS Core Inflation rate has dipped to 2.9% in June, from 3.1% in May 2024.
- Private transport costs and retail inflation are key factors in the easing of price pressures.
- MAS’ July 2024 Monetary Policy Statement will be released on 26 July 2024 at 8.00 am.
In Singapore, a recent report shows a small yet positive change in inflation trends for June 2024.
Overview of Inflation Changes
Singapore’s cost of living saw a slight drop in inflation as reported by MAS.
The MAS noted a lower yearly inflation rate for core consumer prices.
At the same time, the month-to-month figures for these prices stayed the same.
A clear drop in vehicle prices and petrol helped reduce private transport costs.
Lower clothing and footwear prices reduced retail inflation rates.
- Medicines and health products had smaller price increases.
- Slower rise in holiday costs helped service inflation slow down.
- Housing rent increases became less sharp, lowering accommodation inflation.
Economic Outlook and Forecasts
A MAS spokesperson said, “
MAS Core Inflation is expected to stay on a gradual moderating trend over the rest of the year.“
Forecasts expect the MAS Core Inflation average to be around 2.5% to 3.5% in 2024.
Outside factors like political and weather events could change global prices.
A balance between a strong job market and world economic changes affects forecasts.
Take a look at this quick table for a clear overview:
| Inflation Trend | Expected Rates for 2024 |
|---|---|
| General outlook | Slowing MAS Core Inflation |
| Excluding 1% GST Hike | 1.5% to 2.5% |
| Including 1% GST Hike | 2.5% to 3.5% |
| Risks | Global influences and market changes |
Impacts on Consumers and Businesses
Lower inflation may change consumer spending habits.
Stable transport and housing prices could strongly support economic confidence.
Businesses might pass on operational costs to prices more gently.
As Singapore sees a slight easing in inflation, consumers’ wallets feel a bit of relief.
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