SINGAPORE (Reuters) -Singapore’s key consumer price gauge rose 0.6% in June from a year earlier, official data showed on Wednesday, lower than economists’ forecasts.
The core inflation rate, which excludes private road transport and accommodation costs, compared with a forecast of 0.7% in a Reuters poll of economists.
Headline inflation was 0.8% in annual terms in June, lower than economists’ forecast of 0.9%.
The data was released a week ahead of the Monetary Authority of Singapore’s review of its policy settings on July 30.
EToro market analyst Josh Gilbert said the softer-than-expected inflation rate adds weight to expectations that the central bank will loosen monetary policy.
“With growth still sluggish and inflation now well contained, it will be harder for MAS to justify holding policy steady, and today’s data strengthens that argument,” he said.
At the previous review in April, the MAS loosened monetary policy for the second time this year, and downgraded its economic growth forecast for 2025 to 0% to 2%.
It also reduced its forecasts for both core and headline inflation this year to 0.5% to 1.5%.
(Reporting by Jun Yuan Yong; Editing by John Mair)
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