Recasts lead and adds background and economist quote throughout

By Bing Hong Lok

SINGAPORE, Feb 24 (Reuters) - Singapore's key consumer price gauge rose 0.8% in January from a year earlier, lower than economists' forecasts and the smallest rise in more than three years, official data showed on Monday.

The core inflation rate, which excludes private road transport and accommodation costs, compared with a 1.5% forecast by a Reuters poll of economists.

Headline inflation was 1.2% in annual terms in January, lower than economists' forecasts of 2.15%.

Statistics Singapore said the consumer price index had been rebased to 2024 from 2019. The annual change in the headline inflation rate in December was revised to 1.5% from 1.6%.

Core inflation fell from a peak of 5.5% in early 2023 and eased further late last year. The January rate was the smallest rise since June 2021 when it rose by 0.6%.

OCBC economist Selena Ling said the softer-than-expected core inflation could lead to further easing of Singapore's monetary policy in its next review in April.

Ling said: "While trade frictions may escalate and prove inflationary for economies like the U.S., the impact on Singapore's imported prices is likely to be mitigated by disinflationary drags due to weaker global demand."

The central bank loosened monetary policy last month for the first time since 2020.

Singapore forecasts GDP growth to moderate to ease to 1%-3% in 2025 from 4.4% in 2024, and core inflation to be at 1.0% to 2.0% this year.

(Reporting by Bing Hong Lok; Editing by John Mair and Barbara Lewis)

((binghong.lok@thomsonreuters.com;))