Singapore’s monetary authority says that core inflation is higher than the historic average, although it remains contained. The economy is expected to grow by 2 to 4 percent this year. This was said at the release of the MAS annual report for the financial year 2013/2014.
MAS Managing Director Ravi Menon said the MAS plans to maintain core inflation expectations at 2.5 percent. He said the MAS will allow a modest and gradual appreciation of the Singapore Dollar to ensure core inflation stays within 2 to 3 per cent this year.
According to the Department of Statistics, core inflation rose by 2.1 per cent year-on-year in June. In May, it was a 2.2 percent year-on-year growth. Core inflation doesn’t include changes in the prices of private road transport and accommodation.
From June last year, Singapore’s consumer price index has risen by 1.8 percent. In May, the CPI had risen by 2.7 percent from a year ago.