Singapore Sept headline CPI seen falling for 23rd month: poll

[SINGAPORE] Singapore's consumer price index (CPI) is expected to have dropped for a 23rd straight month in September from a year earlier, although the rate of decline likely moderated from recent months, a Reuters poll showed.

The median forecast from a Reuters survey of 11 economists was for the all-items CPI to have fallen 0.2 per cent in September from a year ago, after declining 0.3 per cent in August.

That would be the smallest annual drop for the index since Dec 2014, when CPI fell 0.1 per cent.

Downward pressure on prices is expected to have moderated in September, with economists citing factors such as recent rises in the prices of car permits compared with levels earlier in 2016.

Headline CPI has been falling on an annual basis since Nov 2014, hit by lower global oil prices as well as falls in housing rents and private transport costs.

According to the Reuters survey, core CPI was forecast to have risen one per cent in September from a year earlier, the same pace as in August.

The central bank's core inflation measure excludes changes in the price of cars and accommodation, which are influenced more by government policies.

On Oct 14, Singapore's central bank held policy steady despite a surprisingly sharp economic contraction in the third quarter.

However, some analysts say the weak inflation and growth outlook will likely force policymakers to ease further.

REUTERS