SINGAPORE, Aug 23 (Reuters) - Singapore's core inflationeased to its slowest pace in more than three years in July,falling below economists' forecasts due to declines in utilitiesand retail prices, official data showed on Friday.
The core inflation gauge rose 0.8% from a year earlier, theslowest rate since April 2016, versus a 1.0% forecast in aReuters poll and 1.2% increase in the previous month.
Core inflation is the Monetary Authority of Singapore'spreferred price gauge for setting monetary policy. It excludeschanges in the price of cars and accommodation, which areinfluenced more by government policies.
The headline consumer price index in July rose 0.4%year-on-year. The poll had called for a 0.55% rise, comparedwith a 0.6% increase a month earlier.
Singapore has been posting a slew of muted economic growthdata. Last week, it slashed its full-year economic growthforecast as global conditions were seen worsening and dataconfirmed the slowest growth rate in a decade, amid mountingfears of a recession in the city-state.
The benign inflation outlook had reinforced expectationsthat the central bank will loosen policy later this year.(Reporting by John Geddie and Aradhana Aravindan; Editing bySubhranshu Sahu)