Singapore Deflation Slows; Core Inflation at 6-Month High


Singapore consumer prices dropped 0.6 percent year-on-year in September of 2015 from a 0.8 percent decline in the previous month and above market consensus. It is the biggest year-on-year fall since late 2009, mainly due to a decline in cost of housing & utilities and transport while cost of food slowed. Yet, core inflation accelerated the most since March.

Year-on-year, downward prices pressures came from: housing & utilities (-3.6 percent in September from -3.6 percent in August, largely due to a 8.5 percent drop in fuel & utilities and a 2.9 percent fall in accommodation) and household durables & services (-1.5 percent from -2.2 percent, mainly due to a  2.7 percent decline in household services & supplies). Cost also dropped for transport (-2.2 percent from -2.3 percent, due to a 3.2 percent decline in private road transport and a 3.4 percent fall in other travel & transport) and communication (-1.5 percent from -0.2 percent). In contrast, upward prices pressures came from: clothing & footwear (+2.3 percent from -0.9 percent); healthcare (+0.7 percent from -0.5 percent, largely due to a 0.8 percent increase in medical products, appliances & equipment and a 0.7 percent rise in medical & dental treatment). Cost also rose for recreation & culture (+0.7 percent from +0.4 percent, mainly due to a 0.3 percent increase in recreation & entertainment, a 2.1 percent rise in newspapers, books & stationery and a 0.9 percent rise in holiday expenses),  education (+3.5 percent from +3.7 percent) and miscellaneous goods & services (+0.1 percent from -0.4 percent, mainly due to a 0.2 percent increase in personal care, a 0.2 percent rise in alcoholic drinks & tobacco and a 0.6 percent growth in other miscellaneous expenditure).
 
Prices of food moderated to 1.8 percent in September from 1.9 percent in a month earlier. Among food, cost of food excluding food servicing services increased by 0.7 percent, following a 0.8 percent rise in the preceding month while food servicing services rose 2.4 percent, the same pace as in August. Among food excluding food servicing services, prices increased  for bread & cereals (+0.3 percent); meat (+0.3 percent); fish & seafood (+1.3 percent); milk, cheese & eggs (+1.5 percent); fruits (+2.5 percent); non-alcoholic beverages (+0.1 percent) and other food (+0.3 percent). In contrast, prices declined by 1.9 percent for oils & fats. Among food servicing services, while prices of catered food declined by 0.2 percent, prices increased for other components: restaurant foods (+4.0 percent), fast food (+1.4 percent) and hawker food including food courts (+1.6 percent).
 
On a month-on-month basis, consumer prices remained unchanged in September, following a 0.1 percent increase in the previous month. Price rose the most for clothing & footwear (+0.9 percent), education (+0.7 percent), household durables & services (+0.5 percent), food (+0.1 percent), healthcare (+0.1 percent) and education (+0.1 percent). In contrast, cost declined for  housing & utilities (-0.3 percent), transport (-0.1 percent)  and miscellaneous goods & services (-0.2 percent). Prices remained unchanged for communication.
 
Considering the first nine months of  2015, consumer prices dropped 0.5 percent.

Singapore Deflation Slows; Core Inflation at 6-Month High


Statistics Singapore l Rida Husna | rida@tradingeconomics.com
10/23/2015 7:03:49 AM