SINGAPORE -Singapore’s November headline prices rose by their fastest pace in nearly nine years on higher private transport and services costs, while the government also slightly increased its 2021 outlook for the measure.
Headline inflation rose by 3.8%, exceeding economists’ forecast of 3.35% and 3.2% in October. That is the most it has risen since February 2013.
The core inflation rate — the central bank’s favoured price measure – rose to 1.6% in November on a year-on-year basis, the highest since January 2019, versus 1.5% in the prior month. A Reuters poll of economists had forecast a 1.5% increase.
Core inflation is projected to average 0.9% for 2021 with headline inflation at 2.3%, the Monetary Authority of Singapore and ministry of trade and industry said in a joint statement.
That compared with a previous outlook for core inflation to come in near the upper end of a 0–1% range, and headline prices to be at about 2%.
For 2022, the central bank maintained its forecast for headline prices to average 1.5–2.5% and core inflation to increase further to 1-2%.
(Reporting by Aradhana Aravindan in Singapore; Editing by Himani Sarkar)