Singapore Inflation Rate Slows to 4-Year Low

In February of 2014, Singapore’s annual inflation rate slowed sharply to 0.4 percent, the lowest level since January of 2010, due to a sharp drop in car prices which largely reflected a higher base in February last year.
Ministry of Trade and Industry | Joana Taborda | 3/24/2014 8:43:01 AM
Private road transport cost saw a sharper fall of 7.1 percent in February, after decreasing by 3.5 percent in January. This was mainly attributed to base effects arising from the surge in COE premiums in January 2013, as well as the dip in petrol pump prices.  

Food inflation was 2.3 percent, down from 3.0 percent a month earlier, due to the correction in non-cooked food prices after the Chinese New Year as well as the high base last year.

Services fees rose at a slower pace of 2.1 percent in February compared to 2.9 percent in the preceding month, led by a more moderate increase in the cost of household services.

Accommodation cost increased by 2.0 percent, lower than the 2.4 percent rise in January, as imputed rentals on owner-occupied accommodation (OOA) edged up more gradually.

Inflation as measured by CPI less imputed rentals on OOA came in at 0 percent in February, down from 1.2 percent a month earlier, given the decline in private road transport cost as well as the easing of food and services inflation. 

MAS Core Inflation, which excludes the costs of accommodation and private road transport, fell to 1.6 percent from 2.2 percent a month ago due to the lower contributions from costs of food and services.  

On a month-on-month basis, prices declined by 0.1 percent in February mainly due to seasonal factors.

Singapore Inflation Rate Slows to 4-Year Low