Core inflation, which excludes private transport and accommodation and is closely watched by the Monetary Authority of Singapore, came in at 3.1% in April from a year ago, according to a joint statement Thursday from the MAS and the ministry of trade and industry. That matched the median estimate in a Bloomberg survey of economists, and was the same as the March rate.

An increase in electricity and gas, and retail and other goods inflation was offset by lower services and food inflation, according to the statement.

The all-items consumer price index also remained stable at 2.7% from a year ago, matching estimates, data showed. An increase in private transport costs was offset by lower accommodation inflation, the MAS and MTI said.

Retail and other goods inflation quickened 1.6% on-year from 0.7%
The data allows policymakers the room to watch how peers move, even as the city-state’s government flagged a global desynchronisation of monetary policy cycles as one of the risks to its economic outlook.

Such divergence could lead to greater volatility in capital flows and currency fluctuations, the MTI said earlier Thursday, while retaining its domestic growth forecast for 2024 at between 1% and 3%.

The MAS, which uses the exchange rate as its main policy tool rather than interest rates, is due to review policy settings next in July. The authority has stood pat for four straight meetings through April, maintaining the appreciating path of its exchange rate — which in turn helps check imported inflation.

The authorities retained their 2024 headline and core inflation projections, expecting the measures to average 2.5%–3.5%.