SINGAPORE, April 26 (Reuters) - Singapore's core inflation rate is expected to remain elevated in coming quarters before falling more discernibly in the fourth quarter and into 2025, the city-state's central bank said in its macroeconomic review released on Friday.
The Monetary Authority of Singapore (MAS), which left its monetary policy settings unchanged at a review earlier this month, said both core and headline inflation were expected to come in at an average of 2.5–3.5% in 2024.
"Core inflation is forecast to stay elevated in the immediate quarters ahead, hovering slightly above or close to 3%, before stepping down more discernibly in Q4 and into 2025," the MAS said.
Data on Tuesday showed the annual core inflation rate was 3.1% in March, lower than 3.6% in February.
The central bank said that despite the pace of economic growth easing in the first quarter, it expected the economy's prospects to improve as 2024 progressed.
"Overall, the broad alignment of the global macroeconomic, tech and interest rate cycles should enable Singapore to attain growth of 1–3% in 2024, following the 1.1% expansion in 2023," the MAS said.
The central bank noted there were both upside and downside risks to the inflation outlook.
It said shocks to global food and energy prices or stronger-than-expected labour demand in the financial hub could add to inflation pressures, while an unexpected weakening in the global economy could lead to a faster easing of cost and price pressures. (Reporting by Xinghui Kok; Editing by John Mair)
