Singapore Inflation Rate at 4-Month Low of 0.4% in August


Consumer prices in Singapore rose 0.4 percent from a year earlier in August of 2017, following a 0.5 percent rise in the prior month while market expected a 0.6 percent increase. It was the lowest inflation rate since April, as cost of food and transport increased at slower paces while cost of housing & utilities continued to fall.

Year-on-year, prices went up less than in a month earlier for: clothing & footwear (1.6 percent from 2.6 percent in August); health care (2.5 percent from 2.9 percent, mainly due to a 3.3 percent rise in medical & dental treatment) and transport (1.4 percent from 2.0 percent, largely due to a 2.6 percent rise in private road transport). Cost also rose at softer rate for: miscellaneous goods & services (0.1 percent from 0.5 percent, due to a 0.1 percent rise in alcoholic drinks & tobacco, a 2.8 percent rise in personal effects and a 1.9 percent increase in other miscellaneous expenditure); education (2.7 percent from 2.8 percent, due to a 2.7 percent rise in tuition & other fees and a 0.9 percent gain in school textbooks & related study guides) and communication (0.1 percent from 0.3 percent). 

Cost increased more for household durables & services (1.2 percent from 1.0 percent, largely due to a 2.2 percent increase in household services & supplies), while rebounded for recreation & culture (0.3 percent from -0.1 percent, due to a 0.4 percent rise in recreation & entertainment, a 0.2 percent increase in newspapers, books & stationery and a 0.2 percent in holiday expenses.

On the other hand, cost fell for housing & utilities  (-2.3 percent from -2.5 percent, mainly due to a 3.9 percent decline in accommodation). 

Prices of food rose 1.2 percent, compared to a 1.4 percent gain in the previous two months. Among food excluding food servicing services, cost increased for bread & cereals (0.6 percent); meat (1.2 percent); milk, cheese & eggs (0.4 percent); fish & seafood (2.5 percent); oils & fats (0.9 percent), fruits (2.6 percent); sugar, preserves & confectionery (0.6 percent), non-alcoholic beverages (0.6 percent) and other food (1.2 percent).  In contrast, cost fell for vegetables (-0.1 percent). Among food servicing services, prices increased for all categories: restaurant foods (0.8 percent), fast food (0.3 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, rose 1.4 percent from 1.6 percent  in July and below estimates of 1.6 percent. It was the lowest figure since March.

On a month-on-month basis, consumer prices went up 0.3 percent, after declining 0.2 percent in  a month earlier.

Singapore Inflation Rate at 4-Month Low of 0.4% in August


Statistics Singapore l Rida Husna | rida@tradingeconomics.com
9/25/2017 5:48:18 AM