Core prices, which exclude private transport and accommodation costs came in at 2.9% in June from a year ago, according to a statement from the Monetary Authority of Singapore and the Ministry of Trade and Industry on Tuesday. The reading — a level last seen in March 2022 — was slower than the 3% median estimate in a Bloomberg survey of economists.

The all-items inflation slowed to 2.4% after printing 3.1% in May. The deceleration was driven by softer gains in private transport and healthcare costs. On a month-on-month basis, the headline measure fell 0.2% from 0.7% increase in the prior month.

Slowing price gains allows policymakers the room to keep monetary settings conducive to support economic growth amid rising geopolitical tensions.

The MAS, which is due to review monetary policy on June 26, is likely to stand pat for a fifth straight meeting — keeping the local dollar on an appreciating path, in a stance that will help blunt imported inflation.

The authority, which sees Singapore’s economy expanding closer to its potential rate of 2%-3%, will provide its latest assessment of inflation as well as growth at its quarterly decision Friday.