Singapore Inflation Rate At Near 3-Year High Of 1.6%


Consumer prices in Singapore rose 1.4 percent year-on-year in May of 2017, compared to a 0.4 percent rise in the prior month and in line with market consensus. It was the highest inflation rate since June 2014, driven by a surge in cost of housing and a faster increase in prices of food.

Year-on-year, upward prices pressure came from: clothing & footwear (1.9 percent from 0.5 percent in April), household durables & services (0.7 percent from 0.8 percent, largely due to a  1.8 percent increase in household services & supplies); health care (2.4 percent from 3.0 percent, mainly driven by a 3.4 percent rise in medical & dental treatment); transport (3.8 percent from 4.7 percent, mainly due to a 6.1 percent rise in private road transport); communication (1.0 percent from 0.8 percent) and education (3.2 percent from 3.2 percent, due to a 3.2 percent rise in tuition & other fees and a 0.1 percent increase in school textbooks & related study guides). Also, cost of housing & utilities went up 0.1 percent, rebounding from a 4.6 percent drop in the prior month. In contrast, cost fell for: recreation & culture (-0.2 percent from 0.3 percent, largely due to a 0.3 percent drop in recreation & entertainment and a -0.1 percent decline in holiday expenses) and miscellaneous goods & services (-0.1 percent from 0.1 percent, driven by a 1.8 percent fall in personal care).

Prices of food rose 1.5 percent, faster than a 1.3 percent rise in  the previous three months. Among food excluding food servicing services, cost increased for bread & cereals (1.1 percent); meat (0.5 percent), fish & seafood (2.9 percent); milk, cheese & eggs (0.7 percent); fruits (3.5 percent), vegetables (0.5 percent); sugar, preserves & confectionery (4.0 percent) and other food (1.2 percent). In contrast, cos declined for: oils & fats (-1.9 percent) andnon-alcoholic beverages (-0.3 percent). Among food servicing services, prices increased for all categories: restaurant foods (1.3 percent), fast food (0.5 percent), hawker food including food courts (1.7 percent) and catered food (1.7 percent).

Core consumer prices which exclude costs of accommodation and private road transport, went up 1.6 percent, following a 1.7 percent gain in the prior month and matching expectations.

On a month-on-month basis, consumer prices rose 0.3 percent, after falling 0.3 percent in April.

Statistics Singapore l Rida Husna | rida@tradingeconomics.com
6/23/2017 9:31:25 AM