Singapore inflation inches up to -0.6% in September

Consumer services and retail picked up the slack.

There were no surprises this time as Singapore’s inflation struck more or less at the exact prediction of analysts, as CPI-All Items inflation came in slightly higher compared to -0.8% in August.

According to a joint statement by the MAS and the MTI, a stronger showing by consumer services and retail items drove the growth.

Core inflation, which excludes the costs of accommodation and private road transport, also picked up to 0.6% from 0.2% last month.

Meanwhile, the MAS and MTI says the rise in healthcare services fees and public road transport cost reflected the 0.8% rise of services inflation from 0.5% the previous month.

“The dampening effects of enhanced medical subsidies and SG50-related price promotions dissipated,” the statement said.

Meanwhile, the overall price of retail items was also reversed from a drop last month.

“The overall price of retail items was 0.6% higher, reversing the 0.6% drop in the preceding month, largely due to more costly clothing & footwear and household durables,” the statement said.

Food inflation also dropped down by a millimeter to 1.8% from 1.9% a month earlier due to a slight moderation in the cost of prepared meals.

Private road transport cost continued its skid by 3.2% from 2.9% last month, due to COE premiums and petrol pump prices.

“Accommodation cost fell by 2.9% in September, similar to the decline in the previous month, reflecting the soft housing rental market,” the report added.