Singapore Inflation Rate at 30-Month High of 0.7%

Consumer prices in Singapore rose 0.7 percent year-on-year in February of 2017, compared to a 0.6 percent increase in January and in line with markets expectations. It was the highest inflation rate since August 2014, driven by a faster increase in cost of transport while prices of food rose further and cost of housing & utilities fell slightly less than in the prior month.

Year-on-year, upward prices pressure came from: household durables & services (1.5 percent from 2.1 percent in the prior month, largely due to a  2.9 percent increase in household services & supplies), health care (2.6 percent from 2.5 percent, mainly driven by a 3.5 percent rise in medical & dental treatment), transport (4.2 percent from 2.8 percent, mainly due to a 7.1 percent rise in private road transport), communication (0.7 percent from 0.4 percent) and recreation & culture (0.5 percent from 0.5 percent, largely due to a 6.1 percent increase in newspapers, book & stationery and a 0.3 percent growth in holiday expenses) and education (3.6 percent from 3.5 percent, due to a 3.7 percent rise in tuition & other fees and a 0.1 percent increase in school textbooks & related study guides). In contrast, cost declined for: clothing & footwear (-0.2 percent from-1.5 percent), housing & utilities (-3.1 percent from -3.2 percent, largely due to a 4.0 percent drop in accommodation) and miscellaneous goods & services (compared to a flat reading in a month earlier, due to a 2.0 percent drop in personal care).

Prices of food rose 1.3 percent in February, following a 1.9 percent gain in January. Among food, cost of food excluding food servicing services increased by 1.0 percent, compared to a 2.0 percent rise in a month earlier while food servicing services rose 1.5 percent, following a 1.8 percent gain in a month earlier. Among food excluding food servicing services, cost increased for bread & cereals (1.2 percent), meat (0.2 percent); fish & seafood (0.4 percent); milk, cheese & eggs (0.9 percent), fruits (2.6 percent), vegetables (2.7 percent); sugar, preserves & confectionery (1.7 percent) and other food (0.2 percent). In contrast, prices fell for oils & fats (-2.8 percent) and non-alcoholic beverages (-0.4 percent). Among food servicing services, prices increased for all categories: restaurant foods (0.9 percent), fast food (2.1 percent), hawker food including food courts (1.8 percent) and catered food (2.5 percent).

Core inflation, which excludes costs of accommodation and private road transport, went up 1.2 percent year-on-year, following a 1.5 percent gain in the prior month.

On a month-on-month basis, consumer prices remained unchanged, after gaining 0.2 percent in a month earlier.

Singapore Inflation Rate at 30-Month High of 0.7%

Statistics Singapore l Rida Husna |
3/23/2017 5:32:40 AM