Singapore consumer prices declined by 0.2 percent year-on-year in September of 2016, compared to a 0.3 percent drop in August and in line with market expectations. It was the 23rd straight month of decrease but the smallest fall since December 2014, as cost of housing & utilities and transport dropped further while prices of food rose at a faster pace.
Year-on-year, downward prices pressure came from: clothing & footwear (-1.2 percent from-1.9 percent in August), housing & utilities (-4.3 percent from -4.3 percent, largely due to a 8.9 percent drop in fuel & utilities and a 3.7 percent fall in accommodation) and transport (-0.5 percent from -0.7 percent, mainly due to a 0.4 percent decline in private road transport, a 1.6 percent fall in other travel & transport and a 0.7 percent drop public road transport) and miscellaneous goods & services (-0.3 percent from +0.1 percent, due to a 0.4 percent rise in alcoholic drinks and tobacco and a 0.4 percent rise in personal effects. In contrast, upward prices pressure came from household durables & services (+3.1 percent from +3.2 percent, due to a 0.3 percent rise in household durables and a 4.8 percent increase in household services & supplies), health care (+0.6 percent from +0.8 percent, due to a 0.8 percent rise in medical & dental treatment and a 0.9 percent gain in medical products, appliances & equipment), communication (+0.2 percent from +1.1 percent, recreation & culture (+1.2 percent from +1.0 percent, due to a 5.9 percent increase in newspapers, book & stationery, a 1.6 percent in holiday expenses and a 0.2 percent rise in recreation & entertainment), education (+3.3 percent from +3.4 percent, due to a 3.3 percent rise in tuition & other fees and a 0.3 percent increase in school textbooks & related study guides) .
Prices of food rose 2.2 percent in September increasing from a 2.0 percent growth in a month earlier. Among food, cost of food excluding food servicing services increased by 2.7 percent, following a 2.3 percent rise in the preceding month while food servicing services rose 1.9 percent, the same with August. Among food excluding food servicing services, cost increased for bread & cereals (+2.3 percent), meat (+3.2 percent); fish & seafood (+4.5 percent); fruits (+1.8 percent); milk, cheese & eggs (+1.7 percent), vegetables (+4.4 percent), non-alcoholic beverages (+0.1 percent) and other food (+3.3 percent). In contrast, prices declined for oils & fats (-2.5 percent). Among food servicing services, prices increased for all categories: restaurant foods (+1.9 percent), fast food (+2.4 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 0.9 percent year-on-year, following a 1 percent in a month earlier and slightly below market consensus of a 1 percent increase.
On a month-on-month basis, consumer prices remained unchanged, following a 0.5 percent rise in the previous month. Cost went up for: clothing & footwear (+1.6 percent), transport (+0.1 percent), household durables & services (+0.4 percent) and recreation & culture (+0.2 percent), and food (+0.3 percent). In contrast prices fell for : housing & utilities (-0.3 percent), health care (-0.1 percent), communication (-0.9 percent), education (-0.1 percent) and miscellaneous goods & services (-0.6 percent).
10/24/2016 6:23:23 AM