Singapore inflation slows to 0.4% in August on lower housing costs

Singapore inflation slows to 0.4% in August on lower housing costs

A view of private residential homes and executive condominiums in Singapore. (File photo: Reuters)
SINGAPORE: Singapore's inflation rose slower than expected in August from a year earlier, according to figures from the Department of Statistics on Monday (Sep 25).The headline Consumer Price Index (CPI) was up 0.4 per cent year-on-year in August, slowing from July's increase of 0.6 per cent.
The slower pace of increase largely reflected a fall in private road transport inflation, and to a lesser extent, a moderation in food and retail inflation, which collectively more than offset the smaller decline in the cost of accommodation, said a joint release from the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI).Prices in all categories were higher, expect for housing and utilities which saw a decrease of 2.3 per cent from a year ago.
The cost of accommodation fell by 3.9 per cent year-on-year in August, less than the 4.1 per cent decline in the previous month.The cost of retail and other goods, including water, rose by 0.9 per cent in August, lower than the 1.2 per cent recorded in the previous month, reflecting more modest increases in clothing and footwear prices.
Meanwhile, core inflation, which excludes accommodation and private road transport costs, moderated to 1.4 per cent in August, slightly lower than the 1.6 per cent in July due to lower food and retail inflation.For 2017, MAS and MTI still expect core inflation to average 1 to 2 per cent compared with 0.9 per cent in 2016, while CPI is projected to rise to 0.5 to 1.5 per cent from -0.5 per cent last year.
Source: CNA/am