Singapore Inflation Rate Inches Higher to 0.5% in August
Singapore's annual inflation rate edged up to 0.5 percent in August 2019 from a six-month low of 0.4 percent in the previous month, matching market consensus. Transport and food prices rose at a faster pace while housing deflation eased.
9/23/2019 10:42:13 AM
Transport prices increased faster (1.1 percent vs 0.9 percent in July), due to private road transport (0.6 percent vs 0.3 percent), public road transport (2.5 percent, the same as in July), and other travel & transport (3.1 percent vs 1.9 percent). In addition, food prices advanced 1.6 percent, compared to 1.4 percent in July. Within food excluding food servicing services, prices rose for bread & cereals (1.3 percent vs 1 percent); meat (0.8 percent vs -0.5 percent); fish & seafood (1.6 percent vs -0.1 percent); milk, cheese & eggs (0.8 percent vs 0.6 percent); oils & fats (0.2 percent vs -0.8 percent); and fruits (1.7 percent vs 0.3 percent). Among food servicing services, cost went up at a steeper pace for restaurant food (2 percent vs 1.9 percent) and hawker food (1.7 percent vs 1.6 percent).
The annual core inflation rate, which excludes the costs of accommodation and private road transport, was 0.8 percent in August, unchanged from the previous month's three-year low.
Housing & utilities cost dropped at a softer pace (-1.3 percent vs -1.5 percent), as prices of accommodation (-0.7 percent vs -0.9 percent) and fuel & utilities (-5.2 percent vs -4.6 percent) continued to drop in the wake of the phased nationwide launch of the Open Electricity Market (OEM) on electricity prices.
Meanwhile, inflation slowed for: recreation & culture (0.6 percent vs 1.3 percent); health care (0.9 percent vs 1.3 percent); household durables & services (0.8 percent vs 0.9 percent); and miscellaneous goods & services (0.1 percent vs 0.3 percent).
Singapore's central bank and government expect 2019 core inflation rate to stay within the lower half of the 1–2 percent forecast range, while the headline inflation is seen averaging between 0.5-1.5 percent.
On a month-on-month basis, consumer prices also rose by 0.5 percent in August, the first monthly rise in three months, after a 0.4 percent fall in July.