Singapore’s core inflation unchanged at 1.3% in May

Fiona HoJune 26, 2019

Singapore’s core inflation rate in May remained unchanged from the previous month at 1.3 percent, as higher food and retail inflation offset a steeper drop in the cost of electricity and gas, according to the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI).

Consumer price index-all items inflation, however, climbed to 0.9 percent year-on-year in May, from 0.8 percent in April.

“This was driven by a more modest decline in accommodation costs as well as higher private road transport, retail and food inflation, which outweighed a larger fall in electricity & gas costs.”

Accommodation cost dropped at a more moderate pace of one percent year-on-year in May – reflecting a slower pace of decline in housing rentals and a stronger pickup in housing maintenance and repairs cost.

Private road transport cost rose 1.5 percent year-on-year, mainly due to a steeper hike in car prices which offset a smaller increase in petrol prices.

The cost of electricity and gas fell four percent year-on-year in May, steeper than April’s 2.8 percent drop.

Service inflation stood was unchanged from the previous month at two percent, “as a stronger pickup in holiday expenses was offset by a larger decline in the cost of telecommunication services fees as well as smaller increases in airfares and recreational & cultural services fees”.

The overall cost of retail items increased 0.5 percent, higher than the 0.2 percent hike seen in April.

Looking ahead, core inflation is expected “to come in near the mid-point of the forecast range of one to two percent in 2019”, while CPI-All Items inflation is expected to average 0.5 to 1.5 percent.

MAS and MTI also expect private road transport costs to pick up slightly this year, while accommodation costs could decline at a slower pace.

Looking to buy a home in Singapore? Get more insights on the right locations for your new home at AreaInsider.

Fiona Ho, Digital Content Manager at PropertyGuru, edited this story. To contact her about this or other stories, email fiona@propertyguru.com.sg

POST COMMENT

You may also like these articles

S’pore economy grows at fastest pace since 2014

Singapore recorded a GDP growth of 3.6% in 2017, driven by the manufacturing segment. Singapore’s gross domestic product (GDP) expanded by 3.6 percent year-on-year for the whole of 2017, according

Continue ReadingFebruary 15, 2018

Singapore economy to grow 3.3% this year

The finance and insurance industry is expected to contribute to economic growth. Private economists expect Singapore’s economy to grow by 3.3 percent this year, slightly higher than the previous for

Continue ReadingDecember 13, 2018

High correlation between economy and home price growth

New data shows that home prices are dragged down by a sluggish GDP growth.There is a relatively high correlation between the city-state’s home price increase and real economic growth, reported Singa

Continue ReadingDecember 14, 2018