Singapore Consumer Prices Fall for 18th Month


Singapore consumer prices fell 0.5 percent year-on-year in April of 2016, following a 1.0 percent drop in March and market estimates of a 0.7 percent decline. It is the 18th straight month of decline and the longest period of fall on record. In April, while cost of housing & utilities dropped less than in a month earlier, cost of transport declined further and prices of food rose at a faster pace.

Year-on-year, downward prices pressure came from: housing & utilities (-1.9 percent in April from -4.2 percent in March, largely due to a 5.4 percent drop in fuel & utilities and a 0.3 percent fall in accommodation), transport (-5.4 percent from -4.3 percent, due to a 7.1 percent decline in private road transport, a 1.8 percent fall in other travel & transport and a 0.4 percent in public road transport) and communication (-1.9 percent from -1.8 percent). In contrast, upward prices pressures came from: clothing & footwear (+1.8 percent from +1.3 percent), household durables & services (+0.2 percent from -0.3 percent, mainly due to a 0.5 percent rise in household durables and a 0.1 percent increase in household services & supplies). Cost also rose for: health care (+1.1 percent from +0.7 percent, mainly due to a 1.3 percent rise in medical & dental treatment and a 0.7 percent rise in medical products, appliances & equipment), recreation & culture (+1.0 percent from +0.4 percent, mainly due to a 6.0 percent increase in newspapers, book & stationery, a 0.9 percent in holiday expenses and a 0.4 percent rise in recreation & entertainment), education (+3.1 percent from +2.4 percent, mostly due to a 3.1 percent increase in tuition & other fees) and miscellaneous goods & services (+0.6 percent from +0.6 percent, mainly due to a 2.1 percent rise in personal effects, a 0.2 percent growth in other miscellaneous expenditure and a 0.6 percent rise in personal care).

Prices of food rose 2.3 percent in April, up from a 2.2 percent rise in a month earlier. Among food, cost of food excluding food servicing services increased by 2.6 percent, following a 2.3 percent rise in the preceding month while food servicing services rose 2.2 percent, after a 2.2 percent rise in March. Among food excluding food servicing services, cost increased for most of components. Prices of bread & cereals rose 1.4 percent; meat (+1.8 percent); fish & seafood (+4.0 percent); fruits (+3.3 percent); milk, cheese & eggs (+2.1 percent), vegetables (+4.3 percent); sugar, preserves & confectionery (+2.2 percent), non-alcoholic beverages (+0.9 percent)  and other food (+1.8 percent). In contrast, prices declined by 1.8 percent for oils & fats. Among food servicing services, prices increased for all categories: restaurant foods (+3.1 percent), fast food (+2.5 percent), hawker food including food courts (+1.6 percent) and catered food (+0.8 percent).

Core inflation, which excludes costs of accommodation and private road transport, rose 0.8 percent year-on-year from 0.6 percent in March and below market expactations. It is the highest figure since March 2015. 

On a month-on-month basis, consumer prices dropped by 0.1 percent after remaining unchanged in the previous month. Cost declined for: clothing & footwear (-0.6 percent), housing & utilities (-0.9 percent),  and communication (-0.2 percent). In contrast, prices went up for: food (+0.2 percent), household durables & services (+0.7 percent), health care (+0.4 percent), transport (+0.2 percent), recreation & culture (+0.2 percent), education (+0.6 percent) and miscellaneous goods & services (+0.2 percent).

Singapore Consumer Prices Fall for 18th Month


Statistics Singapore l Rida Husna | rida@tradingeconomics.com
5/23/2016 6:47:04 AM