CPI for all items flat in December 2020

Core inflation fell to -0.3% YoY over the same period.

Despite the headline measure moving out of deflation, Singapore has seen consumer prices fall further in December 2020, according to the Department of Statistics (SingStat) consumer price index (CPI) figures.

Core inflation fell to -0.3% YoY, whilst headline inflation was flat at 0% during the same period.

The December data brings full-year core and headline inflation both at a decline of 0.2% YoY in 2020, down from the increase of 1% and 0.6% YoY, respectively, in 2019.

“In 2020, all three income groups incurred cheaper electricity, petrol, outpatient services and clothing & footwear, which collectively outweighed the effect of higher food prices and bus & train fares on their respective CPI-All Items,” the SingStat report stated.

The fall in core inflation was driven by services deflation deepening to -0.8% YoY in December from -0.2% YoY in November. Food inflation also fell to 1.6% YoY, down from 1.8% YoY in November.

Meanwhile, private transport costs boosted the headline inflation, rising 1.2% YoY in December.

For the full year, however, only the food (1.9%), communication (0.7%), and household durables and services (0.3%) categories recorded positive inflation.