Singapore’s core inflation eased last month as forecast, allowing central bankers room to keep monetary policy steady to support the economy.

Core inflation, tracked by the Monetary Authority of Singapore to determine policy settings, slowed for a third straight month to a year-on-year rate of 3.8% in July, official data showed Wednesday. The measure, which excludes housing and private transportation costs, matched the median forecast in a Bloomberg survey of 10 analysts.

The data is a welcome piece of news for Singapore’s administration, with Prime Minister Lee Hsien Loong on Sunday pledging to help citizens cope with retirement and homeownership. The city-state’s monetary authority, which has tightened policy five times since 2021, is expected to stand pat again when it reviews settings next in October to support the economy, whose growth missed estimates last quarter.

All-items inflation cooled to 4.1% in July. That’s slower than the 4.2% forecast by economists in a Bloomberg survey and the 4.5% reading in June.

“Global supply chain frictions have largely eased, and energy and food commodity prices remain below year-ago levels,” according to a joint statement from the MAS and the Ministry of Trade and Industry. “Inflation in Singapore’s major trading partners has also been on an easing trend,” the authorities said, noting that the core measure will likely moderate further over the next few months.

For 2023, headline and core inflation are projected to average 4.5%–5.5% and 3.5%–4.5%, respectively, the authorities said in the statement, reiterating a projection shared last month.

--With assistance from Tomoko Sato.