Singapore's key consumer price gauge rose 0.5% in March from a year earlier, official data showed on Wednesday, the lowest annual rate since 0.6% in June 2021.
The core inflation rate, which excludes private road transport and accommodation costs, was lower than a 0.7% forecast in a Reuters poll of economists. Headline inflation was 0.9% in annual terms in March, lower than the poll's forecast of 1.1%.
Statistics Singapore in February said the CPI had been rebased to a base year of 2024 from 2019.
Core inflation has been declining since a peak of 5.5% in early 2023 and Maybank economist Brian Tan expects core inflation to remain soft and average 0.9% for 2025 because of looming U.S. tariffs.
"Tariffs are disinflationary for a small and open economy like Singapore, given that higher import costs and heightened trade policy uncertainty will hit our external demand," he said. Singapore has said there is a possibility of recession because of economic uncertainty caused by U.S. President Donald Trump's tariffs on imports.
The city-state will be subject to a 10% levy, compared to much steeper tariffs imposed on its neighbours. In April, the central bank loosened monetary policy for the second time this year, just after the trade ministry downgraded its economic growth forecast for 2025 to 0% to 2% from the previous 1% to 3% range.
Singapore had a quarter-on-quarter 0.8% contraction in gross domestic product from January to March.
It also adjusted its core and headline inflation forecasts for this year to 0.5% to 1.5% for both measures from previous ranges of 1% to 2% and 1.5% to 2.5%, respectively. Singapore will hold a general election on May 3 amid the deteriorating outlook, in what will be the first electoral test for Prime Minister Lawrence Wong, who became premier and leader of the ruling People's Action Party last year.
Source: The Star
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<p>Time: 2024 By: Ministry of Industry and Trade</p>
