Singapore Nov headline prices rise 3.8 per cent

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 per cent, exceeding economists’ forecast of 3.35 per cent and 3.2 per cent 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 per cent in November on a year-on-year basis, the highest since January 2019, versus 1.5 per cent in the prior month. A Reuters poll of economists had forecast a 1.5 per cent increase.

Core inflation is projected to average 0.9 per cent for 2021 with headline inflation at 2.3 per cent, 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 per cent range, and headline prices to be at about 2 per cent.

For 2022, the central bank maintained its forecast for headline prices to average 1.5–2.5 per cent and core inflation to increase further to 1-2 per cent.