Singapore Inflation Slows In August

Elias Hubbard
September 25, 2017

Singapore's headline consumer price index rose slower than expected at 0.4 percent in August from a year earlier due to lower accommodation costs, data showed on Monday.

The inflation change largely reflected a fall in private road transport inflation, and to a lesser extent, a moderation in food and retail inflation, which collectively more than offset the smaller decline in the cost of accommodation.

The median forecast in a Reuters poll was for all-items CPI to rise 0.6 percent from a year earlier, unchanged from July.

Singapore's MAS Core Inflation, excluding the cost of accommodation and private road transport, edged down to 1.4 percent in August from 1.6 percent in July, due to lower food and retail inflation. Singapore's inflation slowed in August, matching the weakest pace this year, and testing the Monetary Authority of Singapore ahead of its semi-annual policy decision in October. Month-on-month, core consumer prices remained flat.

Prices in all categories were higher with the exception of housing and utilities, which saw a decrease of 2.3% from a year ago.

For 2017, the central bank forecast core inflation to average 1-2 percent, compared with 0.9 percent in 2016, while overall consumer price inflation was projected to rise to 0.5-1.5 percent from -0.5 percent past year.

Private road transport inflation fell to 2.6 per cent in August from 3.5 per cent in July, while food inflation was lower at 1.2 per cent compared to 1.4 per cent in the preceding month.

"Overall, domestic sources of inflation remain relatively muted", the MAS and Ministry of Trade and Industry said in a joint statement after the data, repeating language they issued in August.

Other reports by Click Lancashire

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