SINGAPORE (Reuters) – Singapore’s core inflation eased to its slowest pace in more than three years in July, falling below economists’ forecasts due to declines in utilities and retail prices, official data showed on Friday.
The core inflation gauge rose 0.8% from a year earlier, the slowest rate since April 2016, versus a 1.0% forecast in a Reuters poll and 1.2% increase in the previous month.
Core inflation is the Monetary Authority of Singapore’s preferred price gauge for setting monetary policy. It excludes changes in the price of cars and accommodation, which are influenced more by government policies.
The headline consumer price index in July rose 0.4% year-on-year. The poll had called for a 0.55% rise, compared with a 0.6% increase a month earlier.
Singapore has been posting a slew of muted economic growth data. Last week, it slashed its full-year economic growth forecast as global conditions were seen worsening and data confirmed the slowest growth rate in a decade, amid mounting fears of a recession in the city-state.
The benign inflation outlook had reinforced expectations that the central bank will loosen policy later this year.
Reporting by John Geddie and Aradhana Aravindan; Editing by Subhranshu SahuOur Standards:The Thomson Reuters Trust Principles.