Singapore's inflation peak may be over (Photo: Wikipedia)Singapore (VNA) – Singapore’s inflationcooled in June for the second consecutive month, with an overall rate of 4.5%,down from the 5.1% in May and core inflation at 4.2%, down from 4.7% of theprevious month. This sends out a signal that the country's inflation has passed its peak, according to the country's Monetary Authority of Singapore (MAS) or the central bank, and the Ministry of Trade and Industry (MTI).
Factors contributing to inflation in the country saw slower increases in food, service and private transport prices, lower importcosts compared to the previous year, and tightening conditions in the domesticlabor market. Inflation fell in June across all categories including food,personal travel, services, electricity and gas.
Private-sector economists suggest that if this trendpersists, core inflation, which excludes personal travel and accommodationcosts, could fall to 3% or lower for the whole of 2023.
With inflation trend down further in the secondhalf of the year, economists still maintain their stance that MAS is unlikelyto adjust monetary policy at its next meeting in October.
MAS and the MTI lowered Singapore's overall inflationforecast for 2023 to 4.5-5.5% from the 5.5-6.5% previously forecast while thecore inflation estimate remains unchanged at 3.5-4.5%.
Economists believed that the falling inflation shows that the decision by the MAS to pause the tightening ofmonetary policy in April is appropriate. Core inflation is expected to takelonger to return to 2.5-3%, as the labour market remains tight, domestic demandrecovers, and the number of foreign tourists increases, among other factors./.
