Singapore’s inflation lowest in 7 months

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Inflation in Singapore retreated further in September as the cost of private road transport fell, the Department of Statistics said on Thursday (Oct 23).

The consumer price index (CPI) rose 0.6 per cent in September from a year ago, slowing from 0.9 per cent in August and 1.2 per cent in July.

Private road transport cost fell by 2.8 per cent in September, following the 2.9 per cent fall in August, reflecting the “more moderate decline in COE premiums relative to a year ago”, the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) said in a joint statement.

Services inflation slowed to 1.7 per cent in September from 2.1 per cent in the preceding month.

Accommodation cost fell by 0.6 per cent, extending the 0.2 per cent decline in August, as a result of the soft housing rental market.

Food inflation rose to 3 per cent from 2 per cent in August, mainly due to a steeper increase in the prices of prepared meals.

Core inflation – which excludes changes in the price of private road transport and accommodation since these are influenced more by government policies – rose 1.9 per cent year-on-year in September, down from August’s 2.1 per cent.

Looking ahead, MAS said inflation is expected to continue easing for the rest of the year. However, food inflation could be impacted in the near term by higher prices of regional food supplies.