An aerial view of Singapore’s Marina Bay Street Circuit on Sept. 17, 2024.<\/p>\n
Roslan Rahman | Afp | Getty Images<\/p>\n
Singapore’s inflation in November remained steady at 1.2%, missing estimates, as a higher increase in prices of services <\/a>was offset by a steeper decline in electricity costs.<\/p>\n The reading was lower than Reuters-polled analysts’ median estimates of 1.3%. <\/p>\n Core inflation in the city-state, which strips out prices of private transport and accommodation, also came in at 1.2%, compared to expectations of 1.3%.<\/p>\n Higher services inflation at 1.9% was due to larger increases in the costs of point-to-point transport, which includes taxis, ride-hailing and car-pooling services, and health insurance.<\/p>\n In contrast, inflation for retail and other goods slowed as the prices of clothing and footwear, as well as personal-care appliances declined, in addition to the fall in electricity costs.<\/p>\n Core inflation is forecast to be around 0.5% in 2025, before rising to 0.5%\u20131.5% in 2026. Headline inflation is expected to average 0.5%\u20131.0% in 2025 and 0.5%-1.5% in 2026, MAS said in a statement.<\/p>\n “Supply shocks, including those stemming from geopolitical developments, could lift some imported costs abruptly. However, a sharper-than-expected weakening in global demand could keep core inflation lower for longer,” the statement said.<\/p>\n The inflation reading comes after better-than-expected economic data from Singapore, with non-oil exports surging 11.6% year on year in November, beating estimates of a 7% rise. <\/p>\n Singapore’s economy grew at 4.2% in the third quarter, also beating expectations of 4% expansion. <\/p>\n Last month, the Singapore’s ministry of trade and industry upgraded the country’s annual GDP forecast<\/a> to “around 4%,” and about 1%-3% for 2026, a sharp revision from April’s forecast, when it had warned that zero growth<\/a> was also a possibility. The ministry said that the global environment had proved more resilient than anticipated, with manufacturing and export demand remaining strong in the third quarter. <\/p>\n MAS has held its monetary policy steady for the last two meetings, after easing it in January and April meetings amid the threat of tariffs over the global economy.