Singapore’s headline inflation rose to 4% in December, prompts review of 2022 forecasts

SINGAPORE’S headline inflation rose to 4 per cent in December, exceeding economists’ expectations and prompting the authorities to review their 2022 forecasts.

December’s figure exceeded economists’ expectations of 3.7 per cent, beating November’s previous high of 3.8 per cent, the latest consumer price data from the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) showed.

Core inflation, which excludes accommodation and private transport, edged up to 2.1 per cent, above the 1.6 per cent figure that was November’s reading and exceeding economists’ median estimate of 1.8 per cent.

“There remains significant uncertainty surrounding the outlook for inflation in the near term, including from the costs of air travel and commodity prices such as food and oil,” said the authorities.

“Given the recent stronger-than-projected inflation outturns, including the sharp upticks in airfares, MAS and MTI are reviewing the current forecasts ranges for Consumer Price Index (CPI) all items inflation and MAS core inflation in 2022,” they added.

With the December figure, full-year core and headline inflation both came in at 0.9 per cent and 2.3 per cent respectively, up from -0.2 per cent for both in 2020.