Singapore Deflation Eases in May


Singapore consumer prices dropped 0.4 percent year-on-year in May of 2015 from a 0.5 percent decline in the previous month and above market forecasts. It is the longest slide since 2009, mainly due to a decline in cost of housing & utilities and household durables & services.

Year-on-year, downward prices pressures came from: housing & utilities (-3.8 percent in May from -3.7 percent in April, largely due to a 12.4 percent drop in fuel & utilities and a 2.5 percent fall in accommodation); household durables & services (-2.0 percent from +1.7 percent, mainly due to a  2.9 percent decline in household services & supplies and a 0.5 percent drop in household durables); health (-0.2 percent from -0.4 percent, mainly due to a 0.5 percent decline in medical & dental treatment); recreation (-0.1 percent from -0.3 percent decline, mainly due to a 0.7 percent decline of holiday expenses) and miscellaneous goods & services (-0.3 percent from -0.4 percent, mainly due to a 2.1 percent decline in personal effects, a 0.5 percent fall of personal care, a 0.4 percent decline in alcoholic drinks & tobacco and a 0.1 percent drop in personal care).
 
In contrast, upward prices pressures came only from transport (+0.9 percent from -1.4 percent, mainly due to a 2.1 percent increase in public road transport  and a 1.0 percent rise in private road transport). Prices moderated for: communication (+0.3 percent from +2.1 percent) and education (+3.1 percent from + 3.2  percent).
 
Food inflation was recorded at 1.8 percent in May, following a 2.1 percent increase in the previous month. Food excluding food servicing services increased by 1.1 percent from 1.7 percent rise in April and  food servicing services rose 2.3 percent from 2.2 percent increase in the preceding month. Among food excluding food servicing services, prices increased  for bread & cereals (+1.2 percent); meat (+1.1 percent); fish & seafood (+1.5 percent); milk, cheese & eggs (+1.3 percent); oils & fats (+1.4 percent); vegetables (+1.6 percent); non-alcoholic beverages (+0.5 percent) and other food (+2.5 percent). In contrast, prices declined for fruits (-0.4 percent) and sugar, preserves & confectionery (-0.1 percent). Among food servicing services, while prices of catered food declined by 0.1 percent, prices increased for other components: restaurant foods (+3.3 percent), fast food (+1.7 percent) and hawker food including food courts (+1.7 percent).
 
Core inflation, which excludes costs of accommodation and private road transport, recorded at 0.1 percent year-on-year, slowing from 0.4 percent in April.
 
On a month-on-month basis, consumer prices accelerated 0.5 percent in May, following a 0.6 percent decline in the previous month. Price increased the most for housing & utilities (+2.0 percent), food (+0.2 percent), transport (+0.7 percent), clothing & footwear (+0.6 percent) and health (+0.4 percent). In contrast, prices dropped for household durables & services (-2.8 percent); communication (-1.8 percent), recreation & culture (-0.2 percent), education (-0.2 percent) and  miscellaneous goods & services (-0.1 percent).
 

Singapore Deflation Eases in May


Statistics Singapore l Rida Husna l rida@tradingeconomics.com
6/23/2015 10:15:06 AM