(March 24): Singapore’s key inflation gauge continued to ease from the previous month as food, recreation and culture prices slowed.

The core inflation rate, which excludes housing and private transportation costs, stood at 0.6% in February from a year earlier, lower than the 0.8% the prior month, according to a statement by the Department of Statistics Singapore on Monday.

That compares against the median estimate of 0.7% in a Bloomberg News survey. That’s the slowest pace since June 2021, which also marks the fifth straight month core inflation has decelerated.

Overall inflation came in at 0.9% last month, less than January’s 1.2% pace and slightly slower than the 1% median estimate.

The Monetary Authority of Singapore revised down its forecast for this year’s core inflation outlook during its January policy review to an average of 1%-2% this year from a previous estimate of 1.5%-2.5%. The central bank kept its outlook that headline inflation will average 1.5%-2.5%. The next MAS meeting will be in April.

Other highlights from the report:

- Healthcare inflation was 1.8% year-on-year in February from 1.5% in January.

- Education inflation was 0.4% from 0.1%.

- Recreation and culture deflation was 1.1% from 0.7% deflation in January.

- Transport price inflation was 1.8%.

- Food inflation was 1%.

Singapore Prime Minister Lawrence Wong defended an election-year budget last month featuring a list of handouts after opposition figures criticised the measures as a short-sighted solution for addressing rising living costs. The country’s election is set to be held by November.

Uploaded by Arion Yeow