Singapore inflation slips to -0.8% in October

Due to lower oil prices.

Singapore remained stuck in deflation after the consumer price index dropped to -0.8% in October, compared to -0.6% in September.

According to the Monetary Authority of Singapore and the Ministry of Trade and Industry, the decline was mainly due to the lower costs of oil-related and retail items.

The cost of oil-related items fell by 10.1%, extending the 8.4% decline in the preceding month, as electricity tariffs were reduced further on the back of softer global oil prices. 

The overall price of retail items was 0.1% lower, a reversal from the 0.6% rise a month earlier, due to a smaller increase in the price of clothing & footwear and cheaper personal care products. 

Accommodation cost was 3% lower, extending the 2.9% decline in the previous month, mainly reflecting the soft housing rental market. 

Private road transport cost fell by a more moderate 2.3%, compared to the 3.2% drop in September, owing to a smaller decrease in petrol pump prices and higher electronic road pricing (ERP) charges. 

MAS Core Inflation, which excludes the costs of accommodation and private road transport, moderated to 0.3% from 0.6% in September