October core inflation falls to three-year low, Latest Business News - The New Paper

October core inflation falls to three-year low

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Core inflation last month cooled to 0.6 per cent, the lowest in more than three years, according to data released yesterday. The last time it fell to the same level was in March 2016.

The latest reading was down from the 0.7 per cent in September, the Monetary Authority of Singapore and Ministry of Trade and Industry said.

The dip was due to a steeper fall in the cost of electricity and gas, and a slower pace of increases in the cost of services, they said.

Core inflation excludes the costs of accommodation and private road transport, which are more affected by government policy and are not considered part of Singaporeans' everyday expenses.

Headline or overall inflation eased to 0.4 per cent, down from 0.5 per cent in September. Both readings were lower than economists' expectations, according to a Bloomberg poll. They had expected core inflation to stay at 0.7 per cent and headline inflation to remain unchanged at 0.5 per cent.

Maybank Kim Eng economists Chua Hak Bin and Lee Ju Ye said: "We expect inflationary pressures to stay muted next year as growth recovers at a sluggish pace and wage growth moderates."

Full-year core inflation is tipped to come in at the lower end of the 1 per cent to 2 per cent official forecast range. Overall inflation is seen at around 0.5 per cent. For next year, both core and headline inflation are expected to average 0.5 per cent to 1.5 per cent. - THE STRAITS TIMES