Singapore's core inflation in July was 2.5% year-on-year, the lowest in more than two years

SINGAPORE (Reuters) – Singapore's main consumer price indicator rose 2.5% in July from a year earlier, the smallest increase since February 2022, official data showed on Friday.

The core inflation rate – which excludes private road transport and accommodation costs – was below the 2.9 percent forecast in a Reuters poll and was even lower at 2.9 percent in June.

This was the smallest annual increase in the core price index since February 2022, when it rose 2.2%.

The headline inflation rate in February rose 2.4% from the same month last year, below the 2.5% rate forecast in the survey. It was the lowest headline inflation rate since August 2021.

Inflation in the Asian financial metropolis has cooled from a peak of 5.5 percent in early 2023, but only fell below the three percent mark in June.

The Monetary Authority of Singapore expects core inflation to ease significantly in the last quarter of this year. It forecasts core inflation of 2.5 to 3.5 percent for this year.

Last week, the Commerce Department revised its forecast for 2024 GDP growth to 2.0-3.0 percent from 1.0-3.0 percent after the economy posted stronger-than-expected growth in the second quarter.

(Reporting by Xinghui Kok; Editing by John Mair)