The inflation rate, measured by the consumer price index, eased to 1.5 percent in April from 3.5 percent in March. This was the lowest inflation rate since February 2010.

In a statement today, the Monetary Authority of Singapore said that this moderation largely reflected the continued effects of the motor vehicle-related policy measures introduced since late February, as well as the temporary impact from the disbursement of government rebates for Housing Development Board service and conservancy charges.

Private road transport costs edged up 0.5 percent year-on-year in April, a significantly smaller rise compared to the 8.6 percent increase in March. Accommodation cost inflation slowed to 2.4 percent in April from 5.8 percent a month earlier. Food inflation was stable at 1.8 percent.

MAS core inflation, which excludes the costs of accommodation and private road transport, slowed to 1.4 percent in April from 1.7 percent in March. This was led by a smaller increase in services costs and a larger decline in the prices of oil-related items, the central bank said.

The ringgit that fell to near a 3-week low of 3.0383 against the greenback has recovered and is worth 3.0358. The greenback-ringgit pair traded 3.0225 at Wednesday's close.

The Singapore dollar is now trading at 1.2678 against the greenback, off its early 10-1/2-month low of 1.2694. The pair ended Wednesday's deals at 1.2667.

In economic news, Singapore's gross domestic product was up a seasonally adjusted annualized 1.8 percent in the first quarter of 2013 compared to the previous three months, the Ministry of Trade and Industry said in today's revised reading.

That's sharply higher than last month's advanced estimate that showed a 1.4 percent contraction - although it's still down from the 3.3 percent increase in the fourth quarter of 2012.

It forecast gross domestic product to expand 2.6 percent this year, down from the prior estimate of 3 percent. However, growth is forecast to pick up to 3.6 percent in 2014.

The government projects only 2.3 percent expansion for this year. The economic growth has plunged to a three-year low in 2012 with GDP growing by just 2 percent.

The central bank in May assessed that downside risks to growth remain considerable. After holding rates for six months, the bank decided to cut its rate by a quarter point to 2.50 percent.

The institute said it expects inflation to ease to 1.8 percent in 2013 from 2.2 percent in 2012.