Local inflation stuck in the red for sixth consecutive month in April

Inflation came in at -0.5% last month.

Singapore slipped into its sixth straight month of negative inflation in April. Data from the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) showed that CPI-All Items inflation came in at -0.5% year-on-year in April, a sharper slip compared to the -0.3% year-on-year decline recorded in April.

Inflation remained in the red mainly due to the sharper price decline in oil-related items and a moderation in services inflation

The cost of oil-related items fell by 11.7% in April, following the 7.9% decrease in the preceding month, as electricity tariffs were reduced further owing to lower global oil prices.

Services inflation eased to 1.1% from 1.5% a month earlier, largely led by a fall in holiday travel cost and the waiver of national examination fees.

Food inflation was stable at 2.1%. While costs of prepared meals rose at a faster pace, this was offset by slower price increases in non-cooked food items.

Accommodation cost was 2.5% lower, extending the 2.2% decline in the previous month, reflecting the soft housing rental market.

Private road transport cost fell by a more modest 2.1% in April, compared to the 4.0% drop in March, largely due to the smaller correction in COE premiums on a year ago basis.

MAS Core Inflation, which excludes the costs of accommodation and private road transport, came in at 0.4% compared to 1.0% in the previous month. This mainly reflected the lower electricity tariffs and services inflation.