Singapore CPI Drops More than Expected in July


Singapore consumer prices declined by 0.7 percent year-on-year in July of 2016, the same pace as in June while market estimated a 0.5 percent fall. It was the 21st straight month of decrease as cost of housing & utilities and transport dropped further while prices of food were steady.

Year-on-year, downward prices pressure came from: clothing & footwear (-1.8 percent from +0.2 percent in June), housing & utilities (-4.3 percent in from -4.2 percent, largely due to a 8.9 percent drop in fuel & utilities and a 3.6 percent fall in accommodation) and transport (-3.5 percent from -4.3 percent, due to a 4.4 percent decline in private road transport, a 1.8 percent fall in other travel & transport and a 0.8 percent drop in public road transport). In contrast, upward prices pressure came from household durables & services (+3.2 percent from +3.4 percent, due to a 0.6 percent rise in household durables and a 4.8 percent increase in household services & supplies), health care (+0.4 percent from +0.7 percent,  due to a 0.7 percent rise in medical & dental treatment and a 0.7 percent drop in medical products, appliances & equipment), communication (+0.9 percent from +0.4 percent), recreation & culture (+1.2 percent from +1.6 percent, due to a 6.3 percent increase in newspapers, book & stationery, a 1.2 percent in holiday expenses and a 0.4 percent rise in recreation & entertainment), education (+3.6 percent from +3.2 percent, due to a 3.7 percent rise in tuition & other fees and a 0.3 percent increase in school textbooks & related study guides) and miscellaneous goods & services (+0.2 percent from +0.5 percent, due to a 0.4 percent rise in personal effects and a 0.8 percent rise in personal care).

Prices of food rose 2.1 percent in July,  the same as in a month earlier. Among food, cost of food excluding food servicing services increased by 2.8 percent, following a 2.6 percent rise in the preceding month while food servicing services rose 1.8 percent, unchanged from the June figure. Among food excluding food servicing services, cost increased for bread & cereals (+1.1 percent), meat (+2.9 percent); fish & seafood (+5.2 percent); fruits (+2.9 percent); milk, cheese & eggs (+1.8 percent), vegetables (+5.5 percent); sugar, preserves & confectionery (+2.8 percent), non-alcoholic beverages (+0.1 percent) and other food (+1.6 percent). In contrast, prices declined by 2.9 percent for oils & fats (-2.9 percent). Among food servicing services, prices increased for all categories: restaurant foods (+1.7 percent), fast food (+3.0 percent), hawker food including food courts (+1.8 percent) and catered food (+0.8 percent).

Core inflation, which excludes costs of accommodation and private road transport, rose 1.0 percent year-on-year from 1.1 percent in June and in line with expectations.

On a month-on-month basis, consumer prices dropped by 0.3 percent, compared to a 0.7 percent increase in June. Cost went down for: clothing & footwear (-0.7 percent), housing & utilities (-1.3 percent), household durables & services (-0.1 percent), transport (-0.1 percent) and recration & culture (-0.5 percent). In contrast, prices rose for: food (+0.1 percent), health care (+0.3 percent) and education (+1.0 percent). Prices remained unchanged for: communication and miscellaneous goods & services.

Singapore CPI Drops More than Expected in July


Statistics Singapore l Rida Husna | rida@tradingeconomics.com
8/23/2016 6:48:00 AM