SINGAPORE: Singapore's headline inflation rate fell to 0.1 per cent in April compared to the 0.2 per cent recorded in March, according to the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) on Wednesday (May 23).
The drop was due to smaller increases in the prices of retail items, electricity and gas, and a "steeper fall" in the cost of private road transport, said the authorities.
The overall cost of retail items rose by 0.9 per cent in April, lower than the 1.3 per cent increase in March, due to a steeper year-ago decline in the prices of personal care products as well as recreation and entertainment goods.
The cost of private road transport fell by 0.8 per cent in April, larger than the 0.6 per cent decline in March.
This was due to a decline in car prices on a year-ago basis following a fall in Certificate of Entitlement (COE) premiums, which more than offset a steeper increase in petrol prices, according to the news release.
Core inflation, which excludes the costs of accommodation and private road transport, eased to 1.3 per cent in April from 1.5 per cent in March, mainly reflecting lower retail inflation and a smaller increase in electricity tariffs.
The two government agencies said core inflation is expected to rise gradually over the course of 2018 to average at the upper half of the 1 per cent to 2 per cent forecast range, should economic conditions evolve as expected.
Similarly, headline inflation is projected to come in at the upper half of the 0 per cent to 1 per cent forecast range for the full year.