Singapore Inflation Rate at 3-Month High of 0.4% in May


Singapore's consumer price inflation rose to 0.4 percent year-on-year in May of 2017 from 0.1 percent in the previous month and above market consensus of 0.3 percent. It is the highest rate since February, as cost of transport picked up and prices of food continued to increase while cost of housing fell less.

In May, cost rose at a faster pace for: household durables & services (0.8 percent from 0.7 percent), mainly due to a 1.7 percent growth in household services & supplies; healthcare (2.3 percent from 2 percent), largely due to a 0.6 percent gain in medical products, appliances & equipment and a 2.8 percent increase in medical & dental treatment; recreation & culture (1.2 percent from 0.7 percent), driven by a 0.5 percent rise in recreation & entertainment,  a 0.1 percent increase in newspapers an entertainment, and a 2.5 percent gain in holiday expenses; and miscellaneous goods & services (1.1 percent from 0.5 percent), mainly driven by a 5.7 percent rise in alcoholic beverages & tobacco and a 0.4 percent rise in other miscellaneous expenditure.

Meanwhile, cost of transport was flat, compared to a 0.7 percent fall in a month earlier, due to a 0.1 percent rise in private road transport and a 1.1 percent fall in public road transport. In addition, cost fell less for: housing & utilities (-2 percent from -2.3 percent, mainly due to a 3.2 percent drop in accomodation); and communication (-0.8 percent from -1.3 percent). On the other hand, inflation was steady for education (at 2.9 percent), due to a 3 percent rise in tuition & other fees and a 0.3 percent gain in school textbooks & related study guides.

Prices of food increased 1.3 percent, after a 1.4 percent rise in April. Among food excluding food servicing services, cost went up for: bread & cereals (1 percent); meat (0.1 percent); fish and seafood (1.8 percent); milk, cheese & eggs (1.3 percent); oils & fats (3.4 percent); sugar, preserves & confectionery (0.3 percent); other food (2.3 percent); non-alcoholic beverages (1.3 percent); while fell for vegetables (-1.1 percent). Among food servicing services, prices advanced for all categories: restaurant foods (0.7 percent); fast food (0.1 percent); hawker food including food courts (1.6 percent), and catered food (0.3 percent).

Core consumer prices which exclude costs of accommodation and private road transport, increased by 1.5 percent, following a 1.3 percent gain in April and slightly above expectations of 1.4 percent. 

On a month-on-month basis, consumer prices went up by 0.6 percent, compared to a 0.5 percent fall in a month earlier. It is the highest monthly figure since November last year.

Singapore Inflation Rate at 3-Month High of 0.4% in May


Statistics Singapore l Rida | rida@tradingeconomics.com
6/25/2018 7:01:35 AM