Buildings in Singapore, on Monday, Feb. 17, 2025.
Nicky Loh | Bloomberg | Getty Images
Singapore’s key consumer price gauge came in above expectations in April, data showed Friday, but it remained at a low level and authorities said the risks to inflation were tilted to the downside given the uncertain global economic environment.
The annual core inflation rate, which excludes private road transport and accommodation costs, was 0.7% in April, above the median forecast of 0.5% in a Reuters poll of economists and also the March reading of 0.5%.
Headline inflation was 0.9% in annual terms in April, steady with March’s reading and a notch higher than economists’ forecast of a 0.8% rate.
While the rise in the annual core inflation rate was the first since September last year, when it had ticked up to 2.8%, it was the fourth consecutive month where the reading was below 1%.
“Given the lack of clarity on (U.S.) tariffs, notwithstanding the ongoing trade negotiations, especially the eventual outcome of the 90-day (U.S.) trade truce with China, the disinflation path is likely still bumpy,” OCBC economist Selena Ling said.
The Monetary Authority of Singapore loosened monetary policy for the second time this year at a review in April, reflecting concerns about its growth outlook amid economic uncertainty from U.S. tariffs. It also reduced its forecasts for both core and headline inflation to 0.5% to 1.5%.
“The risks to inflation are tilted towards the downside given heightened uncertainties in the external environment,” the MAS and Trade Ministry said in a statement on the data.
Singapore last month also downgraded its GDP forecast for 2025 to 0% to 2% from the previous 1% to 3%, citing the direct and indirect impacts of the U.S. tariffs, and officials have said there is a risk of recession in the city-state.
