Singapore inflation rises to the slowest rhythm since February 2021

Singapore inflation rose due to its lowest rate since February 2021, increasing 1.2% year after year in January, below 1.5% reviewed in December.

This is the first key piece of economic data since Singapore announced its 2025 budget on February 18, which promised More support for homes and businesses To combat the cost of living pressures.

During the budget discourse, Prime Minister Lawrence Wong said: “While inflation is expected to relieve this year, prices are still high. Singapurenses are still adjusted to these new price realities.”

The main inflation figure is a great failure of the increase of 2.15% expected by the economists surveyed by Reuters.

Central inflation in the country, which eliminates prices from private transport and accommodation, increased 0.8% year after year, Below the revised increase of 1.7% of December and below the growth of 1.5% expected.

In a launchThe Singapore Ministry of Commerce and Industry said the deceleration was due to “lower inflation in all IPC categories of the broad nucleus.”

The Ministry said that inflation imported from Singapore is expected to remain moderate, and added that “although an escalation of commercial friction could be inflationary for some economies, it is likely that its impact on the prices of the import of Singapore is compensated by The disinflar resistances exercised by the weakest global demand. “

The figure occurs as Singapore in January loosen his monetary policy For the first time since 2020, citing a faster decrease than expected in inflation and potential for a slowdown in growth.

The Singapore monetary authority said inflation will remain below 2% this year, “reflecting the return to low and stable underlying price pressures in the economy.”

It is forecast that the inflation of the owner will averaged 1.5% –2.5% in 2025, compared to 2.4% in 2024. More also reduced its forecasts for the inflation rate of the nucleus to an average of 1% to 2% in 2025.

After the data version, the Singapore dollar strengthened 0.16%, quoting 1,3334 against Greenback. Early in the day, he had appreciated up to 1,3307 against the US dollar, marking its strongest level since November.