Singapore's inflation eases to 1.6% in September

Singapore's inflation eases to 1.6% in September

    POSTED: 23 Oct 2013 13:19
 
Singapore's inflation rate eased in September after four consecutive months of gains, largely due to decline in private road transport cost.

SINGAPORE: Singapore's inflation rate eased in September after four consecutive months of gains, largely due to decline in private road transport cost.

The Department of Statistics said the Consumer Price Index (CPI) rose 1.6 per cent year-on-year in September, compared to 2.0 per cent in August.

The headline CPI rate is below economists' forecasts of about 2.0 per cent for September.

Private road transport cost fell by 2.0 per cent after rising marginally in August.

In a statement, the Monetary Authority of Singapore (MAS) said the correction in car prices was due to the high base a year ago, and it more than offset the increase in petrol pump prices in September.

Accommodation cost eased to 3.9 per cent, which is due to a smaller increase in market rentals for both private and HDB properties.

Services inflation was stable at 2.7 per cent, as the higher recreation and entertainment cost was offset by lower contributions from education and household services fees.

Food inflation was 2.4 per cent in September, similar to a month ago.

MAS core inflation, which excludes the costs of accommodation and private road transport, was slightly lower at 1.7 per cent in September, compared to 1.8 per cent in August.

MAS said overall imported inflation is expected to remain subdued, but firms facing higher rentals, COE premiums for commercial vehicles, and labour costs could translate to higher prices of consumer services.

As a result. the MAS core inflation is expected to rise over the next few quarters, and average 1.5 to 2 per cent in 2013 and 2 to 3 per cent in 2014.

CPI-All Items inflation is projected to come in at 2.5 to 3 per cent in 2013 and 2 to 3 per cent in 2014.

- CNA/de

- wong chee tat :)