In February, Singapore saw an increase in consumer price inflation, largely attributed to the rising costs of accommodation, services, and food. This information was disclosed on Monday by the Monetary Authority of Singapore and the Ministry of Trade and Industry.
The consumer price index experienced a yearly rise, advancing 3.4 percent in February. This was a significant increase from January’s 2.9 percent and exceeded the projected 3.3 percent.
Core inflation also saw a considerable boost, reaching a seven-month high of 3.6 percent from 3.1 percent in the previous month.
Detailed data reveals that inflation in accommodation escalated to 3.9 percent as the additional Service and Conservancy Charges rebates, funded in January, were not distributed in February.
Inflation in services grew to 4.2 percent, primarily due to increased airfares and a more pronounced rise in holiday expenditures. Food inflation likewise saw an increase to 3.8 percent from 3.3 percent.
Considering the overall statistics of 2024, both headline and core inflation are expected to average between 2.5 and 3.5 percent.
Although these insights are significant, authorities have warned of enduring inflation risks. These risks might arise from sudden increases in global energy and shipping costs fuelled by geopolitical disputes, higher food commodity prices driven by unfavorable weather conditions, and a tighter domestic labor market than initially expected.
