Singapore's CPI falls for 23rd month in September

Singapore's Consumer Price Index (CPI) fell by 0.2 percent in September year-on-year, the 23rd straight month of decline, according to the latest data jointly released by Ministry of Trade and Industry (MTI) and Monetary Authority of Singapore (MAS) on Monday.

CPI-All Items inflation dropped 0.2 percent year-on-year in September, compared to the 0.3 percent decrease in August. This mainly reflected a smaller decline in private road transport cost, and to a lesser extent, higher food inflation.

MTI and MAS said private road transport cost fell by 0.4 percent, moderating from the 1.0 percent decline in the preceding month, largely on account of a smaller drop in petrol prices.

Accommodation cost decreased by 3.7 percent, extending the 3.6 percent decline in August, amid continued softness in the housing rental market.

The authorities said food inflation rose to 2.2 percent, from 2.0 percent in the previous month, due to a steeper rise in the cost of non-cooked food. While price increases for prepared meals remained stable.

Services inflation moderated to 1.5 percent from 1.7 percent a month earlier, reflecting a fall in public road transport cost, in addition to a smaller increase in telecommunication services fees.

MAS Core Inflation eased slightly to 0.9 percent in September from 1.0 percent in August, as a result of lower services inflation, which more than offset the stronger pickup in food prices.

As for the whole year of 2016, MAS Core Inflation is expected to average around 1 percent before rising to 1-2 percent next year, as energy-related components begin to contribute positively to inflation and temporary disinflationary effects from budgetary measures fade. Endit