Year-on-year, services inflation in September of 2014 slowed to 1.7 percent from 2.1 percent in the preceding month. This was mainly resulting from the moderation in the increase in medical and dental treatment fees to 2.4 percent in the month from 4.6 percent in August, which reflect the impact of enhanced medical subsidies. However, the contribution of telecommunication services, tertiary education and air transport were higher compared to a month before. Accommodation cost fell by 0.6 percent, extending a 0.2 percent decline in the previous month, as a result of the soft housing rental market. Private toad transport cost was lower by 2.8 percent, following a 2.9 percent fall in August, reflecting the more moderate decline in COE premium relative to a year ago. Food inflation was higher at 3.0 percent compared to 2.9 percent increase in August, mainly due to a steeper increase in the prices of prepared meals.
MAS Core Inflation, which excludes the costs of accommodation and private road transport, edged down to 1.9 percent in September, from 2.1 percent a month ago, largely due to the enhanced medical subsidies which caused a one-off reduction in the level of healthcare services cost.
On a month-on-month basis, the consumer price index fell 0.1 percent in September, following a 0.5 percent increase in August, mostly due to lower prices of dental treatment (-4.5 percent), clothing & footwear (-2.2 percent), seafood (-1.8 percent), medical treatment (-1.7 percent) and personal care (-0.5 percent).