Consumer prices decline for the 23rd time in September at 0.2%

Could this mean negative inflation has already bottomed?

Consumer prices in Singapore has fallen for the 23rd time already, with a slight 0.2% contraction in September compared to 0.3% in the preceding month. This rate of decline has so far been the smallest since December 2014.

According to the latest consumer price index (CPI) figures by the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI), this smaller decline was largely on back of a moderation in the fall in private road transport cost.

Private road transport cost fell 0.4% in the said month, rebounding from the 1% contraction in the preceding period. This is largely on account of a smaller drop in petrol prices.

For accommodation costs, the decrease slightly extended to 3.7%. This is amidst continued softness in the housing rental market.

Food inflation, on the other hand, rose to 2.2% in September, due to a steeper rise in the cost of non-cooked food. This came while price increases for prepared meals remained stable.

Meanwhile, services inflation moderated to 1.5% from 1.7% a month earlier. This reflected a fall in public road transport cost.

"Public road transport cost fell by 0.7% in September, following the 0.9% increase in August. The increase in August was due to the low base a year ago when public transport operators provided free bus and train services on National Day in conjunction with the SG50 celebrations," the two institutions said.

The moderation in services' prices was also due to a smaller increase in telecommunication services fees largely due to the discounts offered during various consumer electronic fairs held in the month.