Singapore Reports Deflation For the Second Consecutive Month


Singapore annual consumer prices decreased by 0.2 percent in December of 2014, following a 0.3 percent drop in the previous month. It is the second consecutive decline since November 2009, as cost of transport, housing and clothing and footwear declined.

Year-on-year, prices fell for: transport (-4.1 percent in December from -5.3 percent in November, as cost of private road transport decreased by 5.7 percent) and housing (-1.4 percent from -1.2 percent, as cost of fuel & utilities and accommodation declined by 2.8 percent and 1.4 percent respectively). Prices moderated for: healthcare (1.6 percent from 1.8 percent, as cost of dental treatment declined by 0.4 percent) and recreation & others (+0.6 percent from +0.8 percent,  as cost of hobbies & other miscellaneous expenditure and non-durable household goods fell by 1 percent and 0.3 percent respectively). Services inflation came in at 1.4 percent, unchanged from November, as a steeper increase in telecommunication services fees was offset by a larger decline in holiday travel costs. In contrast, price were higher for: education (+2.8 percent from +2.7 percent) and communication (+1.2 from +0.5 percent).
 
Food inflation was recorded at 2.9 percent in December, the same as in the previosu month, as cost of prepared meals and food excluding prepared meals increased by 3.0 percent and 2.7 percent respectively. Among prepared meals, the highest price increases were seen for hawker food (+3.6 percent), followed by fast food (+2.8 percent), restaurant food (+1.7 percent) and catered food (+1.3 percent). Among food excluding prepared meals, the highest prices increases were recorded for fruits (+8.4 percent), followed by dairy products & eggs (+5.7 percent), other food (+2.1 percent), seafood (+2.0 percent), meat & poultry (+1.7 percent) and vegetables & vegetables products (+1.6 percent).
 
Core inflation, which excludes costs of accommodation and private road transport, recorded at 1.5 percent in December, the same clip as in November.
 
On a month-on-month basis, consumer prices decreased 0.2 percent in December, following a 0.3 percent increase in the previous month. Price declined for: rice  & other cereals (-0.3 percent), meat & poultry (-0.2 percent), sugar (-0.6 percent), non-alcoholic beverages (-0.2 percent), accommodation (-0.3 percent), private road transport (-1.1 percent), proprietary medicine & supplies (-0.4 percent), non-durable household goods (-0.7 percent), recreation & entertainment (-0.1 percent) and alcoholic drinks & tobacco (-0.2 percent). In contrast, price increased for: seafood (+0.7 percent), dairy products & eggs (+0.6 percent), cooking oils and fats (+0.5 percent), vegetable & vegetable products (+0.3 percent), hawker foods and fast food (+0.6 percent respectively), household durables (+0.5 percent), other travel & transport (+4.9 percent) and hobbies & other miscellaneous expenditure (+0.6 percent).

For full year of 2014,  Singapore’s  consumer price index accelerated by 1.0 percent, following a 2.4 increase in the previous year. 

Singapore Reports Deflation For the Second Consecutive Month


Statictics Singapore l Rida Husna l rida@tradingeconomics.com
1/23/2015 11:51:35 AM