Singapore core inflation edges down in September\, surprising economists

Singapore core inflation edges down in September, surprising economists

Reuters  |  SINGAPORE 

By Fathin Ungku

(Reuters) - Singapore's core inflation gauge in September missed forecasts and edged down slightly to 1.8 percent from a year earlier due to lower retail inflation, data showed on Tuesday.

September's data comes weeks after tightened monetary policy for the second time this year and announced that inflation is projected to rise in the near term.

The median forecast in a poll was for core inflation to be 1.9 percent, unchanged from the 4-year highs seen in August and July.

"I'm quite surprised that inflation eased from the four-year high in the last two months," Alvin Liew, an at UOB, told

"If you followed the MAS policy, you'd expect it to edge higher," he added.

The central bank's core inflation measure excludes changes in the price of cars and accommodation, which are influenced more by government policies.

Singapore's headline consumer price index rose less than expected at 0.7 percent in September from a year earlier, unchanged from August. This was also lower than the median forecast in a poll which called for all-items CPI to rise 0.8 percent.

Despite the slower-than-expected inflation gauge, economists like Liew say it is too early to tell if MAS will stop their tightening trajectory next year.

"We have to look at it on a trend basis," said.

"I think it's premature to call it on these numbers," he added.

(Reporting by Fathin Ungku; Editing by Sunil Nair)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, October 23 2018. 11:58 IST