Singapore's consumer prices dip in April
SINGAPORE: Consumer prices in Singapore dipped in April from the previous month, according to figures from the Department of Statistics on Tuesday (May 23).
The consumer price index (CPI) - a key measure of headline inflation - was at 0.4 per cent in April, compared with 0.7 per cent in March, on account of base effects associated with the timing of the disbursement of service and conservancy charges (S&CC) rebates, said the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI).
The CPI-All Items inflation also moderated due to the larger 6.7 per cent decline in the cost of accommodation, compared to the 4 per cent fall in March, they added in the press release.
Private road transport inflation also went up to 7 per cent from March's 6.9 per cent, owing to the faster pace of increase in car and petrol prices, while services inflation also edged up to 1.7 per cent from the previous month's 1.6 per cent. Authorities said this was largely on account of higher telecommunications services fees.
Food inflation remained stable at 1.3 per cent as the rise in non-cooked food inflation was offset by the smaller increase in the prices of prepared meals.
Meanwhile, MAS Core Inflation came in at 1.7 per cent in April, higher than the previous month's 1.2 per cent, and this largely reflected the stronger pickup in the cost of electricity and gas.
Looking forward, MAS and MTI said external inflationary pressures have picked up amid a turnaround in global commmodity markets, with global oil prices rising from their trough in 2016 to average higher this year although this would be capped by elevated inventories and rising US crude oil production.
Domestic sources of inflation remain relatively muted, with conditions in the labour market slacked and expected to dampen underlying wage pressures, they said.
For 2017, MAS Core Inflation is expected to average 1–2 per cent, compared with 0.9 per cent in 2016, while CPI-All Items inflation is projected to rise to 0.5–1.5 per cent from -0.5 per cent last year, said MAS and MTI.