Singapore’s consumer prices up 0.7% in September

Singapore’s consumer prices for September gained 0.7% from a year ago, in the same pace of increase as of the previous month, a joint statement from the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) released on Tuesday showed.

Consumer Price Index (CPI) for all items last month saw a moderation in the prices of retail items but an increase in services and accommodation costs.

Singapore’s core inflation, which excludes accommodation and private road transport costs, increased by 1.8% year-on-year, easing from the 1.9% increase in August due to a moderation in prices of retail items.

The MAS and MTI expects headline inflation for this year to be at around 0.5%, before picking up to the range of 1%-2% for next year. Core inflation is expected to “rise modestly in the months ahead,” coming within the forecast expectations of 1.5%-2.0% for this year and 1.5%-2.5% in 2019.

For last month, the prices of retail items rose by 1.5%, easing from the 2.0% increase in August as there was a slower increase in the prices of clothing and footwear. Meanwhile, the prices of recreation and entertainment goods and telecommunication equipment fell.

Food prices were higher by 1.6%, compared to the 1.7% increase in August, as there was a slower increase in the prices of non-cooked food items.

Services costs increased by 1.4%, edging up from the 1.3% in August, led by an increase in education services fees and a slower fall in prices for telecommunication services.

Accommodation costs fell by 2.5%, moderating from the 2.6% decline in August, due to a slower fall in housing rental fees. Private road transport costs fell by 0.1%, lesser than the 0.2% fall in the previous month. The prices of motorcycles and scooters fell but petrol prices and Electronic Road Pricing (ERP) charges rose.