Singapore Deflation Worsens in April


Singapore consumer prices dropped 0.5 percent year-on-year in April of 2015 from a 0.3 percent decline in the previous month and missing market forecasts. It is the longest slide since 2009, mainly due to a decline in cost of housing & utilities and transport.

Year-on-year, downward prices pressures came from: housing & utilities (-3.7 percent in April from -2.7 percent in March, due to a 12.0 percent drop in fuel & utilities and a 2.5 percent fall in accommodation); transport (-1.4 percent from -2.7 percent, mainly due to a  2.1 percent decline in private road transport and a 4.4 percent fall in other travel & transport); health (-0.4 percent from -0.2 percent, mainly due to a 0.6 percent decline in medical & dental treatment); clothing & footwear (-2.0 percent from a 0.8 percent decline); recreation (-0.3 percent from +0.5 percent, mainly due to a 1.0 percent decline of holiday expenses) and miscellaneous goods & services (-0.4 percent from + 0.2 percent, mainly due to a 1.8 percent decline in personal effects, a 0.5 percent fall of personal care and a 0.4 percent decline of alcoholic drinks & tobacco).

In contrast, upward prices pressures came only from household durables & services (+1.7 percent from +1.6 percent). Prices moderated for: communication (+2.1 percent from  a 2.5 percent increase) and education (+3.2 percent from a 3.5  percent).

Food inflation was recorded at 2.1 percent in April, the same pace as in the previous month. Food excluding food servicing services increased by 1.7 from 2.0 percent rise in March and  food servicing services rose 2.2 percent from 2.1 percent. Among food excluding food servicing services, prices increased the most for oils & fats (+2.7 percent) and sugar, preserves & confectionery (+2.7 percent), followed by fish & seafood (2.2 percent); milk, cheese & eggs (+2.2 percent); other food (+2.1 percent); fruits (+1.5 percent); meat (+1.3 percent); vegetables (+1.0 percent) and non-alcoholic beverages (+0.6 percent). Among food servicing services, while prices of catered food declined by 0.1 percent, prices off other components increased: restaurant foods (+2.6 percent), fast food (+1.7 percent) and hawker food including food courts (+2.1 percent).

Core inflation, which excludes costs of accommodation and private road transport, recorded at 0.4 percent year-on-year, slowing from 1.0 percent in March.

On a month-on-month basis, consumer prices dropped by 0.6 percent in April, following a 0.2 percent rise in the previous month. Price declined the most for housing & utilities (-3.2 percent), clothing & footwear (-1.1 percent) and recreation & culture (-0.4 percent). In contrast, prices increased for food (+0.1 percent); household durables & services (+0.1 percent); transport (+1.3 percent) and miscellaneous goods & services (+0.2 percent).

Singapore Deflation Worsens in April


Statistics Singapore l Rida Husna l rida@tradingeconomics.com
5/25/2015 7:56:38 AM