Headline inflation up 0.5% in August

It was boosted by higher private transport prices.

Singapore’s headline inflation rose 0.5% YoY in August from 0.4% in July due to higher private road transport inflation and a smaller decline in accommodation costs, an announcement revealed.

Also read: Inflation hits three-year low in July

The Monetary Authority of Singapore (MAS) core inflation was 0.8% on a YoY basis in August, unchanged from July, as a steeper fall in the costs of retail goods and electricity & gas was offset by higher food and services inflation. 

Food inflation picked up slightly to 1.6% YoY in August, from 1.4% in the previous month. This was on account of a larger increase in the cost of non-cooked food items, as well as higher food services inflation.

The cost of retail goods declined by 1.5% YoY in August, larger than the 1.0% fall in July. The steeper drop primarily reflected a sharper decline in the cost of medical products, household durables, household supplies and clothing & footwear items, as well as a slower pace of increase in the cost of personal care products.

The cost of electricity & gas fell at a faster pace of 7.8% YoY in August, compared to the 7.0% decline in July, due to the dampening effect of the nationwide launch of the Open Electricity Market (OEM) on electricity prices.

Services inflation edged up to 1.7% YoY in August, from 1.6% in July. This was on account of higher telecommunication services fees and a larger pickup in air fares, which more than offset a slower pace of increase in holiday expenses and fees for recreational & cultural services.

Private road transport costs increased by 0.6% YoY in August, slightly faster than the 0.3% rise in July, as a smaller decline in motorcycle & scooter prices outweighed a larger fall in petrol prices.

Accommodation costs fell by 0.7% YoY in August, moderating from the 0.9% drop in July, due to a more gradual decline in housing rentals.

Inflation, as measured by CPI less imputed rentals on owner-occupied accommodation (OOA), was 0.7% YoY in August, the same rate as in July. Higher inflation for food, services and private road transport broadly offset a larger decline in the costs of retail goods and electricity & gas.