Consumer Prices Ease in January on Lower Services and Food Inflation

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Consumer Prices Ease in January on Lower Services and Food Inflation
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Consumer prices eased in January on the back of lower services and food inflation, in line with full-year projections that both core and headline inflation will continue their downward trend.

Consumer prices eased in January on the back of lower services and food inflation, in line with full-year projections that both core and headline inflation will continue their downward trend. Official data on Feb 23 showed that core inflation, which excludes private transport and accommodation costs to better reflect the expenses of households here, came in at 3.1 per cent year on year in January.

The easing comes despite the rise in goods and services tax (GST) to 9 per cent in January 2024 from 8 per cent in December 2023. The January figure, led by a slower rise in prices of services and food, is slightly lower than the 3.3 per cent in December, the level at which core consumer prices have hovered around for months. Overall or headline inflation also eased to 2.9 per cent year on year in January, an improvement from 3.7 per cent in December. The easing of headline consumer prices is led by a decline in both accommodation and private transport inflatio

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