Singapore Reports Deflation For The First Time in 5-Years


Singapore consumer prices decreased 0.3 percent in November of 2014, following a 0.1 percent increase in the previous month. It is the first drop since December of 2009 as transport and accommodation cost declined.

Year-on-year, transport cost decreased by 5.3 percent in November following a 4 percent drop reported a month earlier as petrol pump prices fell 4.3 percent.

Housing cost declined by 1.2 percent, extending a 1 percent correction in October, as a result of the soft housing rental market. 

Services cost growth moderated to 1.4 percent from 1.7 percent in the previous month, given lower holiday travel cost and a smaller increase in household services cost and medical treatment fees.

Food inflation rose to 2.9 percent in November from a 2.8 percent a month earlier, due to price increases for  non-cooked food items and prepared meals.

Core Inflation, which excludes the costs of accommodation and private road transport, eased to 1.5 percent in November from 1.7 percent in October, mainly owing to a smaller increase in services fees.

On a month-on-month basis, the consumer price index increased 0.3 percent in November, following a 0.4 percent drop in October. Price increases were reported for: accommodation (+1.5 percent), vegetable and vegetable products (+1.3 percent), fruits (+0.8 percent), hobbies & other miscellaneous expenditure (+0.6 percent), meat & poultry (+0.5 percent), personal effects (+0.5 percent), dairy products (+0.5 percent) and cooking oil & fats (+0.4 percent). In contrast, prices declined for: private road transport (-0.7 percent), personal care (-0.4 percent), sugar and seafood (-0.3 percent respectively), fuel (-0.2 percent) and household durables (-0.1 percent).

Singapore Reports Deflation For The First Time in 5-Years


Ministry of Trade and Industry l Rida l rida@tradingeconomics.com
12/23/2014 2:57:07 PM