Surprising deceleration in key categories

  • Singapore’s inflation slows unexpectedly in January
  • Consumer-price index rose 2.9% YoY
  • Core CPI also eased to 3.1% YoY
  • Lower services and food inflation drove the fall in core CPI
  • Analysts surprised by the drop in core inflation
  • Expectations about central bank policy settings may change
  • Factors like declining global food commodity prices and stronger exchange rate to temper imported inflation
  • Cooling inflation welcomed in Singapore
  • Inflation figures for key sectors in January

Singapore’s inflation slowed in the first month of the year, with prices in key categories like food, transport, and housing growing at a slower pace. The consumer-price index rose 2.9% YoY, lower than expected. Core CPI, which excludes private road transport and accommodation costs, also eased to 3.1% YoY. The fall in core CPI was driven by lower services and food inflation, despite the GST increase last month. Analysts were surprised by the drop in core inflation, which may impact expectations about central bank policy settings. Factors like declining global food commodity prices and a stronger exchange rate are expected to temper imported inflation. Cooling inflation will likely be welcomed in Singapore, which recently announced measures to counter the effects of higher inflation. Here are the inflation figures for key sectors in January: Housing & Utilities (+2.4% YoY), Food (+3.3% YoY), Transport (+2.3% YoY), Recreation & Culture (+4.4% YoY), Education (+3.2% YoY), Misc Goods & Services (+2.6% YoY), Communication (+3.6% YoY).

Factuality Level: 8
Factuality Justification: The article provides factual information about Singapore’s inflation rate in January, including specific data points and expert opinions. The information is presented in a clear and straightforward manner without any obvious bias or sensationalism. The article also includes relevant context such as the impact of GST increase and future expectations for inflation.
Noise Level: 3
Noise Justification: The article provides a detailed and relevant analysis of Singapore’s inflation rate in January, including comparisons with previous months and expert opinions. It offers insights into the factors affecting inflation and potential future trends. The information is supported by data and examples, staying on topic throughout the article.
Financial Relevance: Yes
Financial Markets Impacted: The article provides information on Singapore’s inflation rate, which can impact financial markets and companies operating in Singapore.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses Singapore’s inflation rate, which is a financial topic. However, there is no mention of an extreme event.
Private Companies: Maybank Investment Banking Group
Key People: Chua Hak Bin (Regional Co-Head for Macro Research at Maybank Investment Banking Group)

Reported publicly: www.marketwatch.com