Singapore Inflation May 2016


Singapore: Consumer prices hit all-time low in May

June 23, 2016

In May, consumer prices decreased 0.7% compared to the previous month following the 0.1% drop tallied in April. According to Statistics Singapore, the reading mainly reflected a fall in prices of clothing and footwear as well as in housing and utilities.

Consumer prices fell 1.6% annually in May, which was a more pronounced drop than April’s 0.5% decline and marked the lowest reading on record. The reading undershot market expectations of a less pronounced 0.8% decrease. The annual average variation in consumer prices was minus 0.7%, which was down from April’s minus 0.6% and was also a historical low.

The Monetary Authority of Singapore’s (MAS) core inflation measure, which excludes the cost of accommodation and private road transport, edged up from 0.8% in April to 1.0% in May.

The MAS expects the average annual variation in consumer prices to be between minus 1.0% and 0.0% in 2016. FocusEconomics Consensus Forecast panelists expect prices to fall 0.3% 2016, which is down 0.1 percentage points from last month’s estimate. For 2017, the panel sees average inflation at 1.0%.

Author: Massimo Bassetti, Economist

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