Singapore Deflation Deepens in October


Singapore consumer prices dropped 0.8 percent year-on-year in October of 2015 from a 0.6 percent decline in the previous month and missing market consensus. A faster decline in cost of housing & utilities offset a slower drop in cost of transport while prices of food remained steady. Yet, core inflation rose 0.3 percent year-on-year, following a 0.6 percent rise in September.

Year-on-year, downward prices pressures came from: housing & utilities (-4.3 percent in October from -3.6 percent in September, largely due to a 12.7 percent drop in fuel & utilities and a 3.0 percent fall in accommodation) and household durables & services (-1.6 percent from -1.5 percent, mainly due to a  2.6 percent decline in household services & supplies). Cost also dropped for transport (-1.7 percent from -2.2 percent, due to a 2.3 percent decline in private road transport and a 5.6 percent fall in other travel & transport), communication (-0.6 percent from -1.5 percent) and miscellaneous goods & services (-0.5 percent from +0.1 percent, due to a 0.8 percent drop in personal care, a 0.7 percent decline in alcoholic drinks & tobacco and  a 0.3 percent fall in personal effects) . In contrast, upward prices pressures came from: clothing & footwear (+1.0 percent from +2.3 percent); healthcare (+0.6 percent from +0.7 percent, largely due to a 0.3 percent increase in medical products, appliances & equipment and a 0.8 percent rise in medical & dental treatment). Cost also rose for recreation & culture (+0.4 percent from +0.7 percent, mainly due to a 0.7 percent increase in recreation & entertainment, a 0.2 percent rise in newspapers, books & stationery and a 0.1 percent rise in holiday expenses) and education (+3.7 percent from +3.5 percent).

Prices of food rose 1.8 percent in October, the same pace as in a month earlier. Among food, cost of food excluding food servicing services increased by 0.9 percent, following a 0.7 percent rise in the preceding month while food servicing services rose 2.4 percent, the same pace as in September. Among food excluding food servicing services, prices increased  for bread & cereals (+0.4 percent); meat (+0.3 percent); fish & seafood (+0.8 percent); milk, cheese & eggs (+1.4 percent); fruits (+2.6 percent); vegetables (+0.6 percent); sugar, preserves & confectionery (+1.4 percent); non-alcoholic beverages (+1.3 percent) and other food (+0.8 percent). In contrast, prices declined by 2.3 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 (+3.6 percent), fast food (+1.3 percent) and hawker food including food courts (+1.8 percent).

On a month-on-month basis, consumer prices dropped 0.4 percent, after remaining unchanged in September. Prices fell the most for: housing & utilities (-2.2 percent) followed by clothing & footwear (-0.6 percent) and miscellaneous goods & services (-0.1 percent). In contrast, cost rose for: food (+0.3 percent), clothing & footwear (+1.0 percent), healthcare (+0.1 percent), transport (+0.1 percent), communication (+1.2 percent), recreation & culture (+0.4 percent) and education (+0.1 percent). Prices remained unchanged for household durables & services.

Considering the first ten months of  2015, consumer prices fell by 0.5 percent.

Singapore Deflation Deepens in October


Statistics Singapore l Rida Husna | rida@tradingeconomics.com
11/23/2015 7:45:41 AM