On March 25, 2024, the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) reported that Singapore’s inflation increased more than anticipated in February. Headline inflation rose to 3.4% year on year, a significant jump from January’s 2.9%, exceeding the 3.2% median forecast predicted by private-sector economists surveyed by Bloomberg.

The report highlighted that this uptick in inflation was influenced by an increase in accommodation costs alongside a rise in core prices.

Core inflation, which excludes the costs of accommodation and private transport, reached 3.6% year on year, up from 3.1% in January and surpassing economists’ median estimate of 3.4%. The increase was primarily driven by higher services and food inflation, partially attributed to seasonal effects associated with the Chinese New Year.

In terms of month-on-month changes, February saw a 1% rise in headline inflation, while core inflation experienced a 0.5% increase. This data underscores ongoing pressures in Singapore’s economy, particularly in the context of seasonal demand fluctuations.