Singapore’s annual core inflation rate eased to 0.6% in February, data showed on Monday, and an analyst said the lowest reading in nearly four years meant an easing was possible at the central bank’s policy review next month.

The core inflation rate, which excludes private road transport and accommodation costs, was below the median forecast of 0.7% in a Reuters poll and January’s reading of 0.8%.

It was lowest annual rate since 0.6% in June 2021, data from Statistics Singapore showed.

Headline inflation was 0.9% in annual terms in February, matching economists’ forecasts.

OCBC economist Selena Ling said a policy easing at April’s review was possible given the Monetary Authority of Singapore has forecast core inflation at 1.0% to 2.0% this year, and there were downside risks to growth.

“The inflationary impact spillover into the rest of the economies outside of the US is still unclear at this juncture given the frequent flip-flops of tariff announcements,” she said. “For now, central banks may prefer to err on the side of downside growth risks.”

The MAS loosened monetary policy in January for the first time since 2020.

A survey by the central bank published last week showed that economists expected Singapore to grow 2.6% this year, near the midpoint of the trade ministry’s estimate of 1.0% to 3.0%, and the median forecast for core inflation was 1.5%.