Singapore Inflation Rate Slows to 8-Month Low in December


In December of 2013, Singapore annual inflation rate fell to 1.5 percent from 2.6 percent in the preceding month, mainly reflecting the decline in private road transport cost.

Private road transport cost decreased by 2.8 percent in December, following the 3.4 percent rise in November, on account of lower COE premiums. The recent weakness in car COE premiums partly reflected a high base as premiums surged in the same period one year earlier. 

Accommodation cost rose by 2.9 percent compared to the 3.3 percent increase in the previous month, as housing rentals edged up at a slower pace on a year ago basis. Imputed rentals on owner-occupied accommodation contributed 0.5 percent point to overall inflation, down slightly from 0.6 percent point in November. 

Food inflation inched up to 2.7 percent from 2.6 percent in November due to a slightly faster pickup in non-cooked food prices. 

Services inflation was stable at 2.8 percent as smaller increases in the cost of holiday travel and household services were offset by higher contributions from telecommunications and medical treatment costs.  

MAS Core Inflation, which excludes the costs of accommodation and private road transport, eased to 2.0 percent in December from 2.1 percent a month ago due to cheaper retail items such as clothing and footwear.  

On a month-on-month basis, the inflation rate declined by 0.3 percent in December, following a 0.7 percent rise in November. MAS Core Inflation was 0.1 percent compared to 0.3 percent in the previous month.

Singapore Inflation Rate Slows to 8-Month Low in December


Ministry of Trade and Industry | Joana Taborda | joana.taborda@tradingeconomics.com
1/23/2014 8:40:19 AM