Core inflation in Singapore rose by 0.8% year on year in January, marking a significant decrease from the previous month's 1.8% rise. This development represents a key piece of economic data following the unveiling of the 2025 budget on February 18. The January core inflation rate fell short of the expected 1.5% growth, providing an optimistic outlook for the country's economic future.
The headline inflation figure stood at 1.2% year on year in January, the lowest rate since February 2021. Economists had anticipated a 2.15% rise, making the actual figure a wide miss from expectations. The decline in inflation rates suggests potential relief for Singaporeans and aligns with the recent budget's promise to support households and businesses amid ongoing cost of living pressures.
Prime Minister Lawrence Wong, during his budget speech, acknowledged that while inflation is predicted to ease further this year, prices remain elevated. He emphasized that Singaporeans are still acclimating to these new price realities.
"While inflation is expected to ease further this year, prices remain high. Singaporeans are still adjusting to these new price realities." – Prime Minister Lawrence Wong
The revised headline inflation figure for December was 1.5%, indicating that January's rate marks a continued downward trend in inflation. As Singaporeans navigate these economic changes, the government's commitment to mitigating cost pressures through budgetary measures remains crucial.
The 2025 budget, presented by Prime Minister Wong, aims to deliver substantial support for citizens and businesses facing financial challenges due to inflation. By addressing these issues head-on, the budget seeks to stabilize the economy and provide a buffer against fluctuating prices.