Singapore Inflation Rate Down to 3-Year Low


In April of 2013, the year-on-year inflation rate eased to 1.5 percent, the lowest level in more than three years, mainly due to tightened restrictions on vehicle and property purchases.

CPI-All Items inflation eased to 1.5 percent in April from 3.5 percent in March. 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 HDB service & conservancy charges (S&CC).

Private road transport cost edged up by 0.5 percent in April, a significantly smaller rise compared to the 8.6 percent increase a month earlier. The deceleration was due to lower COE premiums in March and price adjustments by car dealers following the implementation of the motor vehicle-related policy measures.

Accommodation cost inflation slowed to 2.4 percent in April from 5.8 percent in March due to the disbursement of S&CC rebates for HDB households. The rebates led to a fall in the cost of minor repairs & maintenance
which partially offset the rise in imputed rentals on owner-occupied accommodation.

The rise in services fees eased slightly to 2.2 percent in April from 2.5 percent in the previous month, due to a decline in holiday travel cost and a smaller increase in school tuition fees.

Prices of oil-related items declined by a steeper 5.2 percent in April relative to the 2.8 percent fall in the preceding month, mainly due to lower electricity tariffs and petrol pump prices compared to a year ago.

Food inflation was stable at 1.8 percent in April.

Ministry of Trade and Industry | Joana Taborda | joana.taborda@tradingeconomics.com
5/23/2013 10:35:16 AM