Inflation eases to 4.0% in August

MTI attributed the moderation to lower core and accommodation inflation.

The rate of price increase eased to 4.0% in August 2023, data from the Ministry of Trade and Industry (MTI) and Monetary Authority of Singapore (MAS) showed.

In July 2023, inflation was at 4.1%.

The moderation of the headline or consumer price index (CPI)-all items inflation was due to the lower core (3.4% YoY from 3.8% YoY) and accommodation (4.4% YoY from 4.6% YoY) inflation.

Other expenditure divisions which saw a decline in the rate of price increase were services (3.1% YoY from 3.6% YoY), food (4.8% YoY from 5.3% YoY), and retail (2.0% YoY from 2.6% YoY).

Electricity and gas costs also declined in August, albeit at a slower pace (-1.4% YoY in August vs. -1.6% in July).

Private transport inflation, on the other hand, picked up to 6.3% YoY as " car prices saw a steeper increase while petrol prices
recorded a smaller decline." 

For 2023, MAS and MTI expect headline inflation and core inflation to average 4.5%–5.5% and 3.5%–4.5%, respectively