Singapore reviews inflation forecasts as core prices near 8-year high

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Headline inflation rose by 4%, a near nine-year high.

A view of residential properties in Singapore

The core inflation rate — the central bank's favoured price measure - rose to 2.1% in December on a year-on-year basis, the highest since July 2014 and topping economist forecasts. A Reuters poll of economists had forecast a 1.7% increase. Monday's data showed headline inflation rose by 4%, a near nine-year high, beating economists' forecast of 3.75%.

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, the Monetary Authority of Singapore and the Ministry of Trade and Industry said in a statement.

 

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