SINGAPORE, Sept 28 Reuters Singapore39;s finance ministry on Thursday announced an additional S1.1 billion 802 million to help households handle increases in the cost of living.

The package includes an additional payment of up to S200 for 2.5 million adult Singaporeans, just under half of its population, to be disbursed in December.

The package, which comes on top of the additional S1.5 billion in support announced in June, is geared towards those in the lower and middle income bands.

Inflation in August eased to 3.4 from 5.5 in January and February.

The ministry in a statement said that while inflation had come down from its peak, households are still dealing with the impact of price increases in various areas.

Economists are generally expecting the central bank to keep monetary policy settings unchanged in a scheduled review next month, on a weak growth outlook and stillelevated but easing inflation.

The ministry narrowed its GDP growth forecast to 0.5 to 1.5 this year from 0.5 to 2.5 previously. The economy grew 3.6 in 2022.

Economic growth has been sluggish, but we do not expect a recession this year. However, the risks are weighted on the downside, and there could be disruptions to food and energy supplies globally, Deputy Prime Minister and Finance Minister Lawrence Wong told a news briefing, in remarks shared by the government.

Reporting by Xinghui Kok; Editing by Martin Petty

Source Reuters