[SINGAPORE] Singapore’s inflation fell further in February, driven by slower price increases across most broad core categories, other than retail and other goods, data from the Singapore Department of Statistics showed on Monday (Mar 24).
Core consumper price index (CPI), which excludes private transport and accommodation, dipped to 0.6 per cent year on year, extending the sharp drop to 0.8 per cent in the January.
On a monthly basis, however, core inflation edged up by 0.1 per cent.
Headline inflation eased to 0.9 per cent year on year in February, down from 1.2 per cent in the previous month. Sequentially, it increased by 0.8 per cent.
In a statement that is nearly identical to the one issued last month, the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) reiterated its inflation outlook, noting that while the escalation of trade frictions could be inflationary for some economies, their impact on Singapore’s import prices is likely to be offset by “disinflationary drags exerted by weaker global demand”.
However, the authorities now deem uncertainties in the external environment, which have an impact on the outlook for inflation, to be “heightened”.
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Key CPI categories
Private transport costs rose at a slower pace of 1.6 per cent year on year in February, compared with 2.8 per cent in the previous month. This was due to smaller increases in car and petrol prices, MAS and MTI said.
Food inflation also moderated, coming in at 1 per cent year on year, as the pace of increase in the prices of non-cooked food and prepared meals slowed. It was 1.5 per cent in January.
Services inflation eased to 0.8 per cent year on year, from 1 per cent previously. This was because of lower airfares and a steeper decline in holiday expenses.
Electricity and gas prices fell more steeply to -3.1 per cent year on year, extending from January’s -2.9 per cent. This was attributed to a larger drop in electricity prices and a decline in gas prices.
Accommodation inflation was unchanged at 1.6 per cent year on year as smaller increases in housing rents were offset by larger increases in housing maintenance and repair costs.
Retail and other goods was the only category that bucked the trend with inflation increasing to -0.4 per cent year on year, from -0.6 per cent in January. This was due to smaller declines in the prices of clothing, footwear, as well as furniture and furnishings.
