Singapore's core inflation increased for the second consecutive month, reaching 1.7% year-on-year in March. This marks an increase from 1.4% in February, according to data from the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI).
The rise is attributed to higher inflation in retail, goods, and services. On a monthly basis, core prices, which exclude accommodation and private transport, saw a 0.1% increase.
Overall inflation, measured by the Consumer Price Index, rose to 1.8% in March, up from 1.2% in February, influenced by increased private transport and core inflation.
Key sectors contributing to the increase include private transport, with inflation rising to 6.6% due to higher petrol prices. Retail and other goods inflation climbed to 1.8%, driven by increased prices for alcohol, tobacco, clothing, and footwear. Services inflation edged up to 2.1%, mainly due to higher costs for point-to-point transport and telecommunication services.
MAS and MTI anticipate that imported cost pressures will continue to rise in the coming months. They project core and overall inflation to average between 1.5% and 2.5% for the year, with risks tilted towards the upside.