Singapore’s Core and Headline Inflation Rates Forecast for 2024

Summary

  • The Monetary Authority of Singapore alongside the trade ministry has projected an average headline and core inflations of 3.0–4.0% and 2.5–3.5% respectively for 2024.
  • During October, the core inflation rate, exclusive of private road transport and accommodation cost dropped from 3.3% whilst the headline inflation rate dropped from 4.7%.
  • The central bank is poised to reevaluate its monetary policy next month after moving policy reviews from a semi-annual to a quarterly schedule.
  • The released manufacturing data suggests a 1.0% increase in the manufacturing output year-on-year in November.

Inflation Projections for 2024

The Monetary Authority of Singapore, in collaboration with the trade ministry, predicted that headline and core inflations to average 3.0–4.0% and 2.5–3.5% respectively in 2024.

An Analysis of Inflation Rates movement in October

The core inflation rate, which omits private road transport and accommodation expenses, slowed down from a previous figure of 3.3% in October. Simultaneously, there was a decrease in headline inflation from 4.7% during October, with a lower figure in November than the expected economists’ projection of 3.8%.

Central Bank Policy Reviews

Next month, the central bank is ready to revise its monetary policy settings, following its switch from semi-annual to quarterly policy reviews.

Manufacturing Data Insight

Manufacturing statistics released on Tuesday showed a 1.0% year-on-year increase in manufacturing output for November.

This recent development could potentially impact global forex trading, particularly in relation to the Singapore dollar and other Asian currencies. Traders should keep an eye on changes in inflation in Singapore as this may influence foreign exchange movements.

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