Singapore inflation down 0.1% in Oct on smaller drag from electricity, petrol prices

INFLATION in Singapore fell 0.1 per cent in October compared to the 0.2 per cent fall in September as a smaller drag from the cost of oil-related items more than offset lower food and services inflation.

According to the median estimate of 19 economists surveyed by Bloomberg, the consumer price index (CPI) is expected to be flat in October.

The Ministry of Trade and Industry and the Monetary Authority of Singapore said in a joint release on Wednesday that the cost of oil-related items fell at a slower rate of 3.7 per cent in October, compared to the 8.4 per cent drop in September, due to a smaller decline in electricity tariffs and petrol prices.

Food inflation moderated to 1.9 per cent from 2.2 per cent in September, due to a slower pace of increase in the cost of non-cooked food items and restaurant meals.

Overall services inflation eased slightly to 1.4 per cent in October from 1.5 per cent a month earlier, as lower telecommunications services fees more than offset a stronger pickup in the cost of medical and dental services.

Private road transport cost was unchanged on a year-ago basis, following the 0.4 per cent fall in the preceding month. This largely reflected a smaller drop in petrol prices and a moderation in the decline of car prices.

Accommodation cost remained on a downtrend, falling by 3.8 per cent in October, following the 3.7 per cent decline in the previous month, amid continued softness in the housing rental market.

Inflation as measured by CPI less imputed rentals on owner-occupied accommodation (OOA) was 0.8 per cent in October, higher than the 0.6 per cent in the preceding month, largely reflecting a smaller decline in the cost of oil-related items.

MAS core inflation rose to 1.1 per cent in October from 0.9 per cent in September, largely on account of the smaller decline in the cost of electricity, liquefied petroleum gas (LPG) & gas, which more than offset lower food and services inflation.