SINGAPORE (Reuters) – Singapore’s key consumer price gauge rose 3.1% in March on a yearly basis, lower than economists’ forecasts, official data showed on Tuesday.
The core inflation rate, which excludes private road transport and accommodation costs, was lower than the 3.5% forecast by a Reuters poll of economists and compared with 3.6% seen in February.
Headline inflation in March was up 2.7% from the same month last year, lower than the 3% forecast in the poll.
The central bank and the trade ministry in a joint statement pegged last month’s decline in core inflation to lower food and services inflation.
While inflation has fallen from its peak of 5.5% in January last year, it remains stubborn amid slowing economic growth and had reached a seven-month high in February.
For the whole of 2023, gross domestic product (GDP) grew 1.1%, moderating from the 3.8% in 2022.
Singapore expects higher GDP growth at 1% to 3% this year but warned the economic outlook was mixed because of geopolitical risks.
In April, the central bank left monetary policy settings unchanged in its second review of the year. It has increased the frequency of its reviews from twice a year to quarterly starting in 2024.
(Reporting by Xinghui Kok; Editing by Martin Petty)
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