Singapore Deflation Above Forecasts in January


Singapore consumer prices dropped 0.4 percent year-on-year in January of 2015, following a 0.2 percent decline in the previous month. It is the third consecutive fall since 2009, mainly due to a drop in cost of transport, housing and clothing and footwear.

Year-on-year, prices fell for: transport (-3.1 percent in January from -4.1 percent in December, as cost of private road transport decreased by 5.0 percent) and housing (-2.4 percent from -1.4 percent, as cost of fuel & utilities fell by 5.6 percent and cost of  accommodation declined by 1.9 percent). Cost also decreased for clothing & footwear (-2.3 percent in January from -2.4 percent in December) and recreation and culture (-0.5 percent from +0.6 percent). Prices moderated for: food (+2.2 percent from +2.9 percent), healthcare (0.6 percent from 1.6 percent and communication (+1.1 percent from +1.2 percent). Prices increased for education (+3.0 percent from +2.8 percent) and other miscellaneous expenditure (+0.6 percent from -1.0 percent).

Food inflation was recorded at 2.2 percent in January, slowing from a 2.7 percent rise in the previous month, as cost moderated for food excluding food servicing services (+1.6 percent from +2.7 percent in December) and food servicing services (+2.5 percent from +2.7 percent). Among food excluding food servicing services, prices declined the most for fish & seafood (-3.0 percent) and sugar & confectionery (-0.5 percent). Among food servicing services, prices slowed for hawker food (+2.6 percent in January from +3.6 percent in December).

Core inflation, which excludes costs of accommodation and private road transport, recorded at 1.0 percent in January, easing from a 1.5 percent increase in December.

On a month-on-month basis, consumer prices decreased 0.2 percent in January, following a 0.2 percent drop in the previous month. Price declined the most for transport (-1.1 percent), mainly due to a 7.8 percent decline of other travel & transport, followed by healthcare (-1.0 percent), mainly due to a 1.5 percent fall in medical & dental treatment, housing & utilities (-0.7 percent), due to a 4.3 percent decline in fuel & utilities and clothing & footwear (-0.2 percent).  For food, prices fell the most for oils & fats (-2.8 percent),  followed by fruits (-0.9 percent), milk, cheese & eggs (-0.8 percent) and other food (-0.5 percent). Cost of education moderated to 1.8 percent in January from 3.0 percent increase in the preceding month, mainly due to a slowdown in tuition and other fees.

Singapore Deflation Above Forecasts in January


Statistics Singapore l Rida Husna l rida@tradingeconomics.com
2/23/2015 10:07:59 AM