SINGAPORE: Singapore's August core consumer price index (CPI) stood at 1.9 per cent, unchanged from the previous month, the Monetary Authority of Singapore (MAS) said on Monday (Sep 24).
Higher retail and food inflation had offset a moderation in services inflation, MAS said in a press release.
AdvertisementThe core inflation measure excludes changes in the price of cars and accommodation.
Headline inflation edged up to 0.7 per cent year-on-year in August, in line with expectations. The median forecast in a Reuters poll was for all-items CPI to rise 0.7 per cent.
This is slightly higher than the 0.6 per cent rise in July, as accommodation costs fell less sharply.
[h=3]READ: Singapore's July core inflation highest in nearly four years[/h] AdvertisementAdvertisementHousing costs fell by 2.6 per cent year-on-year in August, moderating from a 3 per cent decline in July.
This reflects a slower pace of decline in housing rentals and a larger increase in the cost of housing maintenance & repairs, MAS said.
Private road transport costs fell by 0.2 per cent, unchanged from the previous month as a smaller fall in car prices was offset by a less steep increase in petrol prices.
The overall cost of retail items increased by 2 per cent from August last year due mostly to a faster pickup in the prices of clothing and footwear, and personal care products. Food inflation edged up to 1.7 per cent.
Services inflation eased to 1.3 per cent year-on-year from 1.5 per cent the month before. A decline in telecommunication services fees had more than offset a faster pickup in airfares, MAS said.
INFLATION OUTLOOK
MAS core inflation is expected to rise gradually over the course of 2018 to average in the upper half of the 1 to 2 per cent forecast range for the full year.
Similarly, the headline inflation is projected to be within the upper half of the 0 to 1 per cent forecast range, MAS said.
Global oil prices have rallied since the start of the year and are expected to average higher for 2018 as compared to 2017, said MAS. Meanwhile, global food commodity prices are projected to rise slightly.
Domestic sources of inflation are expected to increase alongside a faster pace of wage growth and a pickup in domestic demand.
However, the extent of consumer price increases will remain moderate, as retail rents have stayed relatively subdued and firms’ pricing power may be constrained by market competition.
Accommodation costs are forecast to fall by a smaller extent than in 2017, while private road transport inflation should decline in 2018, it added.
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