Singapore Inflation Rate Steady at 0.5%

Singapore's annual inflation rate came in at 0.5 percent in September 2019, unchanged from the previous month, and matching market consensus. Transport prices slowed and housing & utilities cost fell further while food inflation was steady.
Statistics Singapore l Chusnul Ch Manan | 10/23/2019 10:58:53 AM
Transport prices rose at a softer 0.8 percent year-on-year in September, after increasing 1.1 percent in August, due to private road transport (0.5 percent vs 0.6 percent), public road transport (2.5 percent vs 2.5 percent), while other travel & transport prices fell by 0.5 percent (vs 3.1 percent). Also, inflation slowed for household durables & services (0.6 percent vs 0.8 percent), while miscellaneous goods & services prices were flat (vs 0.1 percent).

Housing & utilities cost dropped 1.3 percent (the same pace as in prior month), as prices of accommodation (-0.5 percent vs -0.7 percent) and fuel & utilities (-5.5 percent vs -5.2 percent) continued to drop in the wake of the phased nationwide launch of the Open Electricity Market (OEM) on electricity prices. 

Food prices increased 1.6 percent, the same pace as in August. Within food excluding food servicing services, prices rose for bread & cereals (1.6 percent vs 1.3 percent); oils & fats (1.8 percent vs 0.2 percent); meat (0.3 percent vs 0.8 percent); fish & seafood (1.1 percent vs 1.6 percent); milk, cheese & eggs (0.4 percent vs 0.8 percent); and fruits (1.7 percent vs 1.7 percent). Among food servicing services, cost went up at a softer pace for restaurant food (1.8 percent vs 2 percent), while hawker food prices rose faster (1.8 percent vs 1.7 percent).

On the other hand, inflation accelerated for both recreation & culture (0.9 percent vs 0.6 percent) and health care (1.4 percent vs 0.9 percent).

The annual core inflation rate, which excludes the costs of accommodation and private road transport edged down to 0.7 percent in September from 0.8 percent, the lowest since March 2016.

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 were flat in September, after a 0.5 percent gain in August.

Singapore Inflation Rate Steady at 0.5%