Singapore inflation inches down to -0.4% in January

SINGAPORE inflation eased to -0.4 per cent in January from -0.1 per cent in December, mainly due to a sharp price declines of oil-related items as well as lower food and services inflation.

Private-sector economists polled by Bloomberg had been expecting a 0.3 per cent fall in the Consumer Price Index (CPI) in January from a year ago.

According to a report released by the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry on Monday, accommodation cost fell by 1.9 per cent, extending the 1.7 per cent decline in the previous month, due to a soft housing rental market.

Private road transport cost fell by 5.0 per cent in January, compared with the 5.3 per cent drop in December, due to a smaller correction in car prices.

MAS core inflation - which strips out the costs of accommodation and private road transport - edged down to one per cent from 1.5 per cent in December. This was due to the cut in electricity tariffs as well as the fall in food and services inflation.