Singapore Deflation Slows in June


Singapore consumer prices dropped 0.3 percent year-on-year in June of 2015 from a 0.4 percent decline in the previous month and matching market consensus. It is the longest slide since 2009, mainly due to a decline in cost of housing & utilities and household durables & services while cost of food increased.

Year-on-year, downward prices pressures came from: housing & utilities (-3.9 percent in June from -3.8 percent in May, largely due to a 12.5 percent drop in fuel & utilities and a 2.6 percent fall in accommodation); household durables & services (-1.8 percent from -2.0 percent, mainly due to a  2.7 percent decline in household services & supplies and a 0.3 percent drop in household durables); health (-0.3 percent from -0.2 percent, mainly due to a 0.7 percent decline in medical & dental treatment) and miscellaneous goods & services (-0.1 percent from -0.3 percent, mainly due to a 0.5 percent decline in alcoholic drinks & tobacco, a 0.3 percent drop in personal effects and a 0.2 percent fall in personal care). In contrast, upward prices pressures came  from food (+2.0 percent from +1.8 percent), clothing & footwear (+0.2 percent from +0.0 percent, communication (+0.5 percent from +0.3 percent) and recreation & culture (+0.1 percent from -0.1 percent, mainly due to a 2.1 percent increase in newspaper, books & stationery and a 0.1 percent increase in recreation & entertainment).

Prices remained unchanged for: transport (+0.9 percent, as a 4.9 percent decline in other travel & transport offset a 2.2 percent increase in public road transport and a 1.2 percent rise in private road transport) and education (+3.1 percent), 

Among food, cost of food excluding food servicing services increased by 1.1 percent, the same as in the previous month while food servicing services rose 2.4 percent from 2.3 percent. Among food excluding food servicing services, prices increased  for bread & cereals (+1.7 percent); meat (+1.5 percent); fish & seafood (+0.9 percent); milk, cheese & eggs (+1.7 percent); oils & fats (+0.3 percent); vegetables (+1.6 percent), sugar, preserves & confectionery (+1.1 percent) and other food (+2.5 percent). In contrast, prices declined for fruits (-0.7 percent) and non-alcoholic beverages (-0.6 percent). Among food servicing services, while prices of catered food declined by 0.1 percent, prices increased for other components: restaurant foods (+3.5 percent), fast food (+1.6 percent) and hawker food including food courts (+1.9 percent).

Core inflation, which excludes costs of accommodation and private road transport, recorded at 0.2 percent year-on-year, accelerating from 0.1 percent in May.

On a month-on-month basis, consumer prices dropped 0.1 percent in June, following a 0.5 percent rise in the previous month. Price declined the most for clothing & footwear (-2.3 percent), miscelleaneous goods & services (-0.5 percent), housing & utilities (-0.3 percent), transport (-0.1 percent) and communication (-0.1 percent). In contrast, prices rose for: food (+0.2 percent), household durables & services (+0.1 percent); health (+0.3 percent) and recreation & culture (+0.2 percent).

During January to June 2015, consumer prices dropped 0.4 percent.

Singapore Deflation Slows in June


Statistics Singapore l Rida Husna l rida@tradingeconomics.com
7/23/2015 7:17:13 AM