Singapore inflation falls 0.9% in August on back of lower transport costs

Private road transport costs fell by 2.9%.

The Monetary Authority of Singapore and the Ministry of Trade and Industry today revealed that CPI-All Items inflation eased to 0.9% in August from 1.2% in July, mainly reflecting a sharper decline in private road transport cost and a more moderate increase in services fees.

Private road transport cost fell by 2.9%, following the 1.6% correction a month earlier, largely due to lower COE premiums in July.1 Petrol pump prices also rose at a slower pace of 0.7%, compared to 3.1% a month ago, on account of the recent weakness in global oil prices.

Services inflation edged down to 2.1% in August from 2.5% in the preceding month, led by more modest increases in the costs of recreation & entertainment and holiday travel.

Accommodation cost declined by 0.2% after coming in flat in July, given the soft housing rental market.

Overall food inflation was slightly lower at 2.9% compared to 3.0% a month ago, as the increase in the prices of prepared meals eased. Non-cooked food prices, however, rose at a quicker pace of 3.4% compared to 2.8% in July, reflecting steeper price increases for seafood and vegetables.

MAS Core Inflation, which excludes the costs of accommodation and private road transport, eased slightly to 2.1% in August, from 2.2% a month ago, mainly due to the lower contribution from services  costs.