Meanwhile, the MAS core inflation rose to 2.9 percent on a year-on-year basis in March, from 2.2 percent in the previous month.
Singapore's MAS core inflation excludes the costs of accommodation and private transport, and CPI-All Items inflation represents the rise in the consumer price index for all items.
According to MTI and MAS, the increase in core inflation this March was driven by higher inflation for food and services. Meanwhile, in addition to the pickup in core inflation, the CPI-All Items inflation increased due to private transport, and accommodation inflation came in higher.
MTI and MAS forecast that the MAS core inflation will pick up further in the coming months, before moderating towards the end of the year as some of the external inflationary pressures recede. However, there remain upside risks to inflation from the recent geopolitical and pandemic-related shocks.
Meanwhile, with private transport and accommodation inflation expected to stay firm in the near term, Singapore's CPI-All Item inflation will pick up by more than core inflation this year, they said.
The two authorities added that for the year 2022 as a whole, the CPI-All Items inflation is forecast to come in between 4.5 and 5.5 percent, while MAS core inflation is projected to average 2.5-3.5 percent.
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