SINGAPORE — Singapore’s headline inflation charge fell to 1.4% in October, down from September’s determine of two%, as the price of automobiles dropped and hire costs rose at a slower tempo.
The patron worth index rise was additionally decrease than the 1.8% that was anticipated amongst economists polled by Reuters. It marked the primary time that Singapore’s headline inflation charge fell beneath 2% since March 2021, when it got here in at 1.3%.
Singapore’s core inflation charge, which strips out lodging and personal transport costs, got here in at 2.1%, down from 2.8% in September and decrease than the two.5% anticipated within the Reuters ballot.
The Financial Authority of Singapore mentioned this was because of service inflation slowing, in addition to costs of electrical energy, fuel, medication and clothes rising at a slower tempo.
The Singapore greenback was buying and selling at 1.34 in opposition to the U.S. greenback after the inflation studying, strengthening by 0.13%.
GDP progress quickens
Not like many different international locations, Singapore doesn’t use benchmark rates of interest to set its financial coverage.
As an alternative, the Financial Authority of Singapore manages the trade charge of the Singapore greenback to stabilize the value of products and companies and obtain wholesome progress.
Inside an undisclosed coverage band, the Singapore greenback fluctuates in opposition to the currencies of the nation’s buying and selling companions. The MAS is ready to alter the slope, width, and stage of the coverage band.
On Friday, Singapore reported that its financial system expanded 5.4% yr on yr within the third quarter, quicker than the 4.1% official advance estimate launched final month.
That marked the city-state’s highest quarterly progress because the fourth quarter in 2021, when it got here in at 6.1%, in line with knowledge compiled by LSEG.
Singapore additionally raised its projection of this yr’s financial progress to “round 3.5%,” from “2.Zero to three.0%.”
— World Head News’s Anniek Bao contributed to this report.
