Singapore Deflation Eases in August


Singapore consumer prices declined by 0.3 percent year-on-year in August of 2016, compared to a 0.7 percent drop in July while market expected a 0.4 percent fall. It was the 22nd straight month of decrease as cost of housing & utilities and transport dropped further while prices of food rose at a slower pace.

Year-on-year, downward prices pressure came from: clothing & footwear (-1.9 percent from-0.18 percent in July), housing & utilities (-4.3 percent from -4.3 percent, largely due to a 8.9 percent drop in fuel & utilities and a 3.6 percent fall in accommodation) and transport (-0.7 percent from -3.5 percent, mainly due to a 1.0 percent decline in private road transport and a 2.0 percent fall in other travel & transport). In contrast, upward prices pressure came from household durables & services (+3.2 percent from +3.2 percent, due to a 0.5 percent rise in household durables and a 4.8 percent increase in household services & supplies), health care (+0.8 percent from +0.4 percent,  due to a 0.8 percent rise in medical & dental treatment and a 0.6 percent gain in medical products, appliances & equipment), communication (+1.1 percent from +0.9 percent), recreation & culture (+1.0 percent from +1.2 percent, due to a 6.2 percent increase in newspapers, book & stationery, a 0.9 percent in holiday expenses and a 0.5 percent rise in recreation & entertainment), education (+3.4 percent from +3.6 percent, due to a 3.5 percent rise in tuition & other fees and a 0.3 percent increase in school textbooks & related study guides) and miscellaneous goods & services (+0.1 percent from +0.2 percent, due to a 1.1 percent rise in personal effects and a 0.3 percent rise in alcoholic drinks & tobacco).

Prices of food rose 2.0 percent in August, slowing from a 2.1 percent growth in a month earlier. Among food, cost of food excluding food servicing services increased by 2.3 percent, following a 2.8 percent rise in the preceding month while food servicing services rose 1.9 percent, up from 1.8 percent in July. Among food excluding food servicing services, cost increased for bread & cereals (+1.0 percent), meat (+2.7 percent); fish & seafood (+4.4 percent); fruits (+1.2 percent); milk, cheese & eggs (+1.9 percent), vegetables (+4.7 percent), non-alcoholic beverages (+0.3 percent) and other food (+2.5 percent). In contrast, prices declined by 1.7 percent for oils & fats (-2.9 percent). Among food servicing services, prices increased for all categories: restaurant foods (+2.0 percent), fast food (+3.1 percent), hawker food including food courts (+1.7 percent) and catered food (+0.8 percent).

Core inflation, which excludes costs of accommodation and private road transport, rose 1.0 percent year-on-year, the same pace as in a month earlier and market consensus of a 1.1 percent increase. 

On a month-on-month basis, consumer prices rose 0.5 percent, following a 0.3 percent decrease. Cost went up for: clothing & footwear (+0.7 percent), housing & utilities (-1.2 percent), health care (+0.4 percent), transport (+0.8 percent), communication (+0.2 percent), education (+0.5 percent) and miscellaneous goods & services (+0.2 percent). In contrast, prices fell for: household durables & services (-0.2 percent) and recreation & culture (-0.2 percent). Prices remained unchanged for food.

Singapore Deflation Eases in August


Statistics Singapore l Rida Husna | rida@tradingeconomics.com
9/23/2016 5:41:15 AM