Forex News

In September, consumer inflation in Singapore remains unchanged

In September, consumer price inflation in Singapore did not change, while the core inflation rate declined, preliminary data from the Ministry of Commerce and Industry, together with the Central Bank of Singapore, showed on Tuesday. P>

The consumer price index rose by 0.7 percent compared to the same period last year. Economists had expected a slightly higher 0.8 percent. R>

A smaller decrease in the cost of housing and an increase in the price of services was offset by a decrease in retail inflation, the central bank said in a statement. R>

The basic inflation rate, which excludes living expenses and private road transport, slowed to 1.8 percent from 1.9 percent in July and August. P>

The weakening occurred as a result of a slowdown in retail inflation, which more than offset the increase in service inflation, the central bank commented. R>

Inflation in food prices slowed to 1.6 percent versus 1.7 percent due to slower growth in prices for uncooked foods.

Inflation in the service sector accelerated to 1.4 percent versus 1.3 percent, which reflects an increase in fees for educational services and a slow decline in fees for telecommunication services. P>

Compared to the previous month, the consumer price index did not change in September, after increasing by 0.4 percent in the previous month. Core inflation has not changed and remained with zero dynamics. P>

The Central Bank expects that inflation in import prices will accelerate in the fourth quarter due to rising world prices for oil and food. Improving the labor market will accelerate wage growth this year and next. R>

“As domestic demand increases even more, higher prices for imports and labor will be reflected in rising consumer prices,” the central bank said in a statement.

"However, the extent of the general price increase will be limited by greater market competition in several consumer segments, such as telecommunications, electricity, and retail." p>

It is expected that core inflation will rise slightly in the coming months and will come close to the projected range of 1.5-2 percent in 2018 and 1.5-2.5 percent in 2019, the central bank said in a statement. p>

The regulator predicts that consumer inflation will be about 0.5 percent by the end of the year, before it accelerates to 1-2 percent in 2019. p>