Singapore's core inflation moderates to 2% in September

Core inflation in Singapore decelerated to 2 percent in September, down from the previous month's reading, driven primarily by lower prices in the services and retail sectors. The moderation reflects cooling demand in these segments following a period of elevated price pressures across the economy. Monetary authorities and trade officials noted the softening trend represents a step toward price stability in the city-state's economy. However, the Monetary Authority of Singapore and Ministry of Trade and Industry cautioned that external risks remain. A sustained and sharp surge in global energy or food prices could significantly raise Singapore's import costs beyond currently projected levels, potentially offsetting recent disinflationary momentum. Singapore, heavily dependent on imported goods and energy, remains vulnerable to international commodity price shocks. Officials said they would continue monitoring external price developments and domestic demand conditions as inflation continues its trajectory toward the central bank's medium-term target range.