Singapore Records Lower Annual All-Item CPI in 2023

However, the core inflation, which excludes private transport and accommodation costs to better reflect household expenses, rose to 4.2 percent last year from 4.1 percent in 2022, said the statement.

The two government agencies added that the inflation rate last year was impacted by the increase in the goods and services tax (GST) rate to 8 percent.

The Singaporean government has lifted the GST rate to 9 percent since Jan. 1.

Despite increases in the GST rate and administrative prices, core inflation should resume a gradual moderating trend in 2024 as import cost pressures decline and tightness in the domestic labor market eases, the statement noted.

The two government agencies forecast that core inflation of the city-state is projected to average 2.5 to 3.5 percent in 2024. 

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