Both headline and core inflation beat Reuters forecasts
Analysts expect inflation to remain elevated in March
Next central bank39;s monetary review is scheduled in April

SINGAPORE, March 25 Reuters Singapore39;s February core inflation accelerated to its fastest pace in seven months, official data showed on Monday, as seasonal effects from the Lunar New Year drove services and food prices higher.

The core inflation rate, which excludes private road transport and accommodation costs, came in 3.6 in February from a year earlier, faster than the 3.4 forecast by a Reuters poll of economists and the 3.1 seen in January.

The February figure was the highest since the 3.8 in July 2023 according to LSEG data.

Headline consumer prices in February were up 3.4 from the same month last year, stronger than the 3.3 forecast in the poll and the 2.9 rise in January.

This was driven by higher services and food inflation, partly reflecting seasonal effects associated with the Chinese New Year, the Trade Ministry and Monetary Authority of Singapore MAS said in a statement on Monday.

Core inflation is expected to resume a gradual moderating trend over the rest of the year, it said, as import cost pressures continue to decline and tightness in the domestic labour market eases.

They projected both headline and core inflation to average 2.5 to 3.5 for 2024, unchanged from previous official forecast.

Going forward, we expect inflation to remain elevated in March before easing to 2…