Singapore Inflation Rate Flat in November


Singapore consumer prices remained unchanged on the year in November of 2016, following a 0.1 percent drop in October and in line with market consensus. The figure came off a deflationary trend for the first time in two years, as a faster increase in prices of food and a slower drop in cost of housing & utilities offset a further fall in cost of transport.

Year-on-year, downward prices pressure came from: clothing & footwear (-0.2 percent from-0.2 percent in October), housing & utilities (-3.7 percent from -3.8 percent, largely due to a 3.5 percent drop in fuel & utilities and a 3.8 percent fall in accommodation), transport (-0.3 percent from -0.2 percent, mainly due to a 3.0 percent fall in other travel & transport and a 0.7 percent drop in public road transport) and communication (-0.6 percent from -0.3 percent). In contrast, upward prices pressure came from household durables & services (+2.6 percent from +3.2 percent, due to a  4.4 percent increase in household services & supplies), health care (+2.4 percent from +0.9 percent,  mainly due to a 3.3 percent rise in medical & dental treatment), recreation & culture (+0.8 percent from +1.0 percent, largely due to a 6.3 percent increase in newspapers, book & stationery, a 1.5  percent in holiday expenses), education (+3.2 percent from +3.2 percent, due to a 3.2 percent rise in tuition & other fees and a 0.3 percent increase in school textbooks & related study guides) and miscellaneous goods & services (+0.8 percent from -0.4 percent, due to a 3.6 percent rise in personal effect, a 0.7 percent gain in alcoholic & tobacco and a 0.5 percent rise in personal care.

Prices of food rose 2.0 percent in November, compared to a 1.9 percent growth in a month earlier. Among food, cost of food excluding food servicing services increased by 2.4 percent, following a 2.1 percent rise in the preceding month while food servicing services rose 1.7 percent, the same as in a month earlier. Among food excluding food servicing services, cost increased for bread & cereals (+1.4 percent), meat (+1.7 percent); fish & seafood (+5.3 percent); milk, cheese & eggs (+1.2 percent), fruits (+2.3 percent), vegetables (+5.4 percent); sugar, preserve & confectionery (+0.6 percent) and other food (+2.2 percent). In contrast, prices declined  for oils & fats (-1.2 percent) and non-alcoholic beverages (-0.1 percent). Among food servicing services, prices increased for all categories: restaurant foods (+1.6 percent), fast food (+2.4 percent), hawker food including food courts (+1.8 percent) and catered food (+1.3 percent).

Core inflation, which excludes costs of accommodation and private road transport, rose 1.3 percent year-on-year, following a 1.1 percent gain in the prior month and matching expectations. It was the highest figure since February 2015.

On a month-on-month basis, consumer prices went up 0.3 percent, compared to a 0.3 percent decline in October. It was the highest inflation level in three months, as cost rose for: food (+0.1 percent), clothing & footwear (+0.5 percent), housing & utilities (+1.1 percent), health care (+0.3 percent) and miscellaneous (+0.8 percent). In contrast, cost fell for: household durables & services (-0.4 percent) and communication (-0.5 percent). Cost remained unchanged for: transport and education.

Singapore Inflation Rate Flat in November


Statistics Singapore l Rida Husna | rida@tradingeconomics.com
12/23/2016 5:50:41 AM