Singapore's April core inflation surges 5.0pc, exceeding expectations

Singapore's key consumer price gauge rose 5.0 per cent in April, higher than forecast, official data showed on Tuesday, according to Reuters.

Core inflation - which excludes private road transport and accommodation costs - rose 5.0 per cent year-on-year in April. A Reuters poll of economists had forecast a 4.7 per cent increase.

Lower inflation for electricity, gas, food, retail and other goods was offset by higher inflation for travel-related services, according to a joint statement by the Monetary Authority of Singapore (MAS) and the trade ministry.

"Global supply chain frictions have eased, and consumer goods inflation in the advanced economies has moderated, even as overall core inflation is still high," they said.

Headline inflation was up 5.7 per cent year-on-year in April, compared with a forecast 5.5 per cent increase in a Reuters poll.

The central bank said core inflation was expected to average 3.5 per cent to 4.5 per cent while headline inflation was forecast at 5.5 per cent to 6.5 per cent this year.

MAS left its monetary policy settings unchanged last month, reflecting concerns about Singapore's growth outlook and surprising economists, who had expected another round of tightening due to elevated inflation.