SINGAPORE — Singapore's core inflation continued to trend downwards in August, falling to 3.4 per cent year-on-year to reach its lowest in more than a year.
Core inflation excludes accommodation and private transport costs.
Services inflation was lower at 3.1 per cent due to smaller increases in holiday expenses, telecommunication services costs, and recreational and cultural services costs, as well as a larger decline in airfares. For 2023 as a whole, headline inflation is expected to average 4.5 per cent to 5.5 per cent, while core inflation is expected to average 3.5 per cent to 4.5 per cent.
Domestically, unit labour costs are expected to rise further in the near term, although at a slower pace. Businesses are likely to continue passing on higher labour costs to consumer prices, but at a more gradual rate amid the slowdown in domestic economic activity.
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