Singapore Deflation Worsens in July


Singapore consumer prices dropped 0.4 percent year-on-year in July of 2015 from a 0.3 percent decline in the previous month and missing market consensus. It is the longest slide since 2009, mainly due to a decline in cost of housing & utilities and household durables & services while cost of food and transport eased.

Year-on-year, downward prices pressures came from: housing & utilities (-3.5 percent in July from -3.9 percent in June, largely due to a 8.6 percent drop in fuel & utilities and a 2.8 percent fall in accommodation); household durables & services (-2.0 percent from -1.8 percent, mainly due to a  2.8 percent decline in household services & supplies and a 0.7 percent drop in household durables); health (-0.4 percent from -0.3 percent, mainly due to a 0.9 percent decline in medical & dental treatment); communication (-0.2 percent from +0.5 percent) and  miscellaneous goods & services (-0.7 percent from -0.1 percent, mainly due to a decline in  personal care (-0.7 percent), alcoholic drinks & tobacco (-0.5 percent) and decline in alcoholic drinks & tobacco and personal effects (-2.3 percent). In contrast, upward prices pressures came  from clothing & footwear (+0.8 percent from +0.2 percent), recreation (+0.3 percent from +0.1 percent, mainly due to a 1.6 percent increase in newspaper, books & stationery) and education (+0.3 percent from +0.1 percent, mainly due to a 3.6 percent increase in tuition & other fees). 

Prices moderated for food (+1.9 percent from +2.0 percent) and transport (+0.1 percent from +0.9 percent, as a 2.2 percent increase in public road transport offset a 3.2 decline in other travel & transport offset and a 0.1 percent drop in private road transport).

Among food, cost of food excluding food servicing services decreased by 0.8 percent, following a 1.1 percent increase in the previous month while food servicing services rose 2.4  percent, unchanged from June 2015. Among food excluding food servicing services, prices increased  for bread & cereals (+1.2 percent); fish & seafood (+1.5 percent); milk, cheese & eggs (+1.9 percent); fruits (+1.3 percent); sugar, preserves & confectionery (+0.6 percent) and other food (+2.4 percent). In contrast, prices declined for meat (-0.2 percent); oils & fats (-0.4 percent); vegetables (-0.3 percent) and non-alcoholic beverages (-1.1 percent). Among food servicing services, while prices of catered food declined by 0.2 percent, prices increased for other components: restaurant foods (+4.1 percent), fast food (+1.5 percent) and hawker food including food courts (+1.6 percent).

Core inflation, which excludes costs of accommodation and private road transport, recorded at 0.4 percent year-on-year, slowing from 0.2 percent in June.

On a month-on-month basis, consumer prices also dropped 0.4 percent in July, following a 0.1 percent fall in the previous month. Price declined the most for housing & utilities (-1.2 percent), followed by transport (-1.0 percent), communication (-0.5 percent) and recreation & culture (-0.1 percent). In contrast, prices rose for food (+0.1 percent), clothing & footwear (+1.3 percent),  household durables & services (+0.1 percent), healthcare (+0.6 percent), education (+0.7 percent) and miscellaneoous goods & services (+0.2 percent).

During January to July 2015, consumer prices dropped 0.4 percent.

Singapore Deflation Worsens in July


Statistics Singapore l Rida Husna l rida@tradingeconomics.com
8/24/2015 6:44:22 AM