Illustrative photo (Source: AFP/VNA)

Singapore - Singapore's core inflation rose to 5.5 per cent year-on-year in January, the highest since November 2008, according to a press release by the Ministry of Trade and Industry (MTI) on February 23.

This was up from the 5.1 per cent recorded in December last year. Core inflation excludes accommodation and private transport costs.

The rise in January was driven by the Goods and Services Tax (GST) rate increase, as well as higher inflation for services, food and retail and other goods.

The headline consumer price index, or overall inflation, was 6.6 per cent year-on-year in January, higher than the 6.5 per cent recorded in December 2022. This reflected the rise in core inflation and the higher accommodation inflation.

Core inflation is set to stay above 5 per cent year-on-year in the first quarter of 2023, and remain elevated for the first half of this year.

For 2023 as a whole, overall inflation is projected to average between 5.5 per cent and 6.5 per cent, while core inflation is expected to come in at between 3.5 per cent and 4.5 per cent.