The MAS tightened its monetary policy four times last year,
including in two surprise moves.
(Reporting by Chen Lin in Singapore
Editing by Ed Davies)
(Adds comments from analysts)
By Chen Lin
SINGAPORE, March 23 (Reuters) - Singapore's key consumer
price gauge rose 5.5% in February, unchanged from January and
lower than forecast, official data showed on Thursday, though
while analysts said core inflation appeared to have peaked,
prices remained at historic highs.
February's core inflation rate - which excludes private road
transport and accommodation costs - compared with a forecast in
a Reuters poll of economists for a 5.8% increase in February.
Lower prices for services were broadly offset in the core
inflation data by higher prices for retail, as well as other
goods and utilities, the Monetary Authority of Singapore (MAS)
said in a statement.
However, the inflation rate in February is still at the same
level as in January, which was the fastest pace seen since
November, 2008.
MAS has said core inflation was likely to stay at about 5%
for the early part of 2023.
It has also projected a core inflation rate of between 3.5%
to 4.5% in 2023, with headline inflation coming in at between
5.5% and 6.5%.
Headline inflation was up 6.3% year-on-year in February,
compared with a forecast 6.45% increase in a Reuters poll.
While analysts said inflation in February was below their
forecasts, there were divisions over the implications for a
monetary policy review MAS will conduct in April.
"The inflation may appear high on year-on-year basis, but it
has started to moderate more than expected in the past few
months," said MUFG analyst Jeff Ng, who expects no changes to
MAS monetary policy in April.
Khoon Goh, head of Asia research at ANZ, said even though
core inflation had peaked and should start to edge lower in
coming months, MAS would still need to tighten policy in April.
"Inflation is still very high, well above the historical
average...MAS will need to tighten further to ensure that
inflation expectations remain well anchored," he said.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.