Consumer Prices in Singapore Grew by 0.2% in March

Singapore’s inflation remained subdued in the previous month due to a gradual increase in prices of food and services compared a month earlier. According to the data from the Department of Statistics issued on Monday, the consumer price index expanded by 0.2 percent in March versus the same in 2017. This shows a lower figure as to 0.5 percent growth in February and below the economists’ forecast of 0.5 percent increase. This happened due to decline in services inflation to 1.4 percent last month versus 1.9 percent in the preceding month. Also, this mainly influences low increases in holiday expenses and airfare a year earlier.

The overall headline inflation is predicted to reach the upper half of zero to 1 percent estimate range for 2018. Experts projected that robust inflation prospect coincides with the decision of the central bank to recover the "modest and gradual appreciation path" of the Singapore dollar this month after being in a neutral position for two years. This action allowed the Singdollar to strengthen gradually versus the country’s basket of currencies major trading partners. The Monetary Authority of Singapore uses the exchange rate as a tool for balancing the main monetary policy towards economic growth and overseas inflation.