Singapore (VNA) – Core consumer prices inSingapore rose at a slower pace for a fifth straight month in September, accordingto the Ministry of Trade and Industry (MTI) of Singapore.

However, economists say uncertainty looms over the inflationoutlook, as the Middle East conflict may push energy prices up. A sharperglobal slowdown can also trigger greater easing of pricepressures, they said.

Official data showed that core inflation, which excludesprivate transport and accommodation costs to better reflect the expenses ofSingapore households, rose 3% year on year in September, which was the lowestlevel in 18 months.

The Monetary Authority of Singapore (MAS) held that coreinflation is expected to ease further to under 3% year on year by December.

However, overall or headline inflation edged up to 4.1% yearon year in September, slightly higher than the 4% in August.

The MTI predicted that due to increased certificate ofentitlement (COE) prices, the country’s headline inflation is expected toaverage around 5% for full-year 2023, and 3-4% for 2024.

In early 2024, core inflation is expected to be impacted bythe increase in the goods and services tax (GST) rate as well as seasonaleffects. However, core inflation should resume a broadly moderating trend over2024, as import cost pressures decline and tightness in the domestic labourmarket continues to ease, MAS and the MTI said.

Private transport inflation should slowly moderate over thecourse of next year alongside an expected increase in COE quotas. Accommodationinflation is also projected to ease as the supply of completed housing unitsincreases, they said.

Experts held that inflation dynamics are still in a state offlux, given the latest developments in the Middle East, which adds increaseduncertainty to energy prices.

MAS and the MTI noted the upside risks to inflation from freshshocks to global energy and food commodity prices due to geopolitical conflictsand adverse weather events./.