Singapore CPI Drops the Least in 2 Years


Singapore consumer prices declined by 0.1 percent year-on-year in October of 2016, compared to a 0.2 percent drop in September while market expected a flat reading. It was the 24th straight month of decrease and the smallest fall in two years, as cost of housing & utilities and transport dropped at a slower pace while prices of food eased.

Year-on-year, downward prices pressure came from: clothing & footwear (-0.2 percent from-1.2 percent in September), housing & utilities (-3.8 percent from -4.3 percent, largely due to a 3.8 percent drop in fuel & utilities and a 3.8 percent fall in accommodation) and transport (-0.2 percent from -0.5 percent, mainly due to a 0.8 percent fall in other travel & transport and a 0.7 percent drop in public road transport), communication (-0.3 percent from +0.2 percent) and miscellaneous goods & services (-0.4 percent from -0.3 percent, due to a 1.1 percent decline in personal care and a 0.7 percent fall in other miscellaneous expenditure)In contrast, upward prices pressure came from household durables & services (+3.2 percent from +3.1 percent, due to a 0.5 percent rise in household durables and a 4.8 percent increase in household services & supplies), health care (+0.9 percent from +0.6 percent,  mainly due to a 1.3 percent rise in medical & dental treatment), recreation & culture (+1.0 percent from +1.2 percent, largely due to a 6.0 percent increase in newspapers, book & stationery, a 1.7  percent in holiday expenses), education (+3.2 percent from +3.3 percent, due to a 3.2 percent rise in tuition & other fees and a 0.3 percent increase in school textbooks & related study guides).

Prices of food rose 1.9 percent in October, slowing from a 2.2 percent growth in a month earlier. Among food, cost of food excluding food servicing services increased by 2.1 percent, following a 2.7 percent rise in the preceding month while food servicing services rose 1.7 percent, compared to a 1.9 percent rise in a month earlier. Among food excluding food servicing services, cost increased for bread & cereals (+1.6 percent), meat (+2.2 percent); fish & seafood (+5.6 percent); milk, cheese & eggs (+1.0 percent), fruits (+1.7 percent), vegetables (+3.0 percent), non-alcoholic beverages (+1.7 percent) and other food (+2.2 percent). In contrast, prices declined  for oils & fats (-2.5 percent). Among food servicing services, prices increased for all categories: restaurant foods (+1.7 percent), fast food (+2.4 percent), hawker food including food courts (+1.7 percent) and catered food (+1.3 percent).

Core inflation, which excludes costs of accommodation and private road transport, rose 1.1 percent year-on-year, following a 0.9 percent gain in September but below consensus of a 1.2 percent increase. It was the highest figure since June.

On a month-on-month basis, consumer prices declined by 0.3 percent, after remaining unchanged in the prior month. It was the first drop since July, as cost fell for: housing & utilities (-1.7 percent) and miscellaneous goods & services (-0.2 percent). In contrast, cost went up for: clothing & footwear (+0.5 percent), household durables & services (+0.1 percent), health care (+0.4 percent), transport (+0.4 percent), communication (+0.6 percent), recreation & culture (+0.1 percent) and education (+0.1 percent). Prices remained unchanged for food.

Singapore CPI Drops the Least in 2 Years


Statistics Singapore l Rida Husna | rida@tradingeconomics.com
11/23/2016 6:15:24 AM