- MAS Core Inflation rose to 2.8% in September 2024.
- CPI-All Items Inflation eased to 2.0% in the same month.
- Core inflation rates are expected to moderate gradually and reach about 2% by the end of 2024.
Singapore’s inflation rates show mixed trends in September 2024, with core inflation rising slightly while overall inflation eases.
Key Terms Simplified
- MAS Core Inflation measures price changes for most things we buy, leaving out big changes in rent and car costs.
- CPI-All Items Inflation measures price changes of a fixed basket of typical household goods and services over time.
- Year-on-year (y-o-y) compares prices now to prices at the same time last year.
September 2024 Inflation Trends
According to MTI, Singapore’s inflation rates showed mixed trends in September 2024.
MAS Core Inflation went up to 2.8% year-on-year in September.
This was a slight increase from 2.7% in August 2024.
The rise was mainly due to higher prices for retail goods and other items.
On the other hand, CPI-All Items Inflation went down to 2.0% year-on-year in September.
This was lower than the 2.2% recorded in August 2024.
The drop was largely because of falling private transport costs.
Key Factors Influencing Inflation
Several factors affected Singapore’s inflation rates in September 2024:
- Retail and other goods prices went up
- Private transport costs fell sharply
- Housing rent increases slowed down
- Food service prices rose at a slower pace
- Electricity and gas prices increased more slowly
These changes in various sectors led to the mixed inflation trends observed in September.
Services and Food Sectors
The services sector saw some interesting developments in September 2024.
Overall services inflation remained unchanged.
However, there were shifts within different service categories.
Telecommunications fees dropped, which would normally lower inflation.
But this was balanced out by rising costs in other areas.
Tuition fees, holiday expenses, and health insurance costs all went up.
In the food sector, there was some change for consumers.
Food inflation decreased as food service prices rose at a slower pace than before.
This means that the cost of eating out increased more slowly compared to previous months.
Future Inflation Outlook
Looking ahead, the Monetary Authority of Singapore (MAS) has made some predictions about future inflation rates.
| Inflation Measure | 2024 Forecast | 2025 Forecast |
|---|---|---|
| MAS Core Inflation | 2.5% – 3.0% | 1.5% – 2.5% |
| CPI-All Items Inflation | Around 2.5% | 1.5% – 2.5% |
MAS expects Core Inflation to gradually decrease to about 2% by the end of 2024.
CPI-All Items inflation is predicted to stay around 2.5% for all of 2024.
For 2025, it’s expected to be between 1.5% and 2.5% on average.
Factors That Could Affect Future Inflation
Several factors could influence Singapore’s inflation rates in the coming months:
- Changes in the job market
- Global political tensions affecting commodity prices
- Possible global economic slowdown
These factors create both risks and opportunities for Singapore’s economy.
A strong job market could push prices up, while a global slowdown might lower inflation.
Impact on Consumers and Businesses
The inflation trends have real-world effects on people and businesses in Singapore.
Consumers might see their daily expenses change as prices for different goods and services shift.
For example, while eating out costs continue to rise but more slowly, other costs like tuition fees could go up.
Businesses, especially those in the retail and service sectors, may need to adjust their pricing strategies.
They’ll need to balance rising costs with changing consumer spending habits.
The housing market may also see changes, with slower increases in rental prices expected.
Do you think these inflation trends will significantly affect your daily spending in the coming months?
