Singapore: Inflation eases in September
October 23, 2013
In September, consumer prices rose 0.1% over the previous month, which is well below the 0.8% increase observed in August. The figure marked the lowest value in five months. According to Statistics Singapore, September's reading was driven by increasing prices for accommodation and transport, which almost fully offset the decrease in prices for communication and clothing.
Annual inflation fell from 2.0% in August to 1.6% in September. The figure undershot the 2.0% increase expected by the markets. Annual average inflation fell from 3.1% in August to 2.8% in September.
The Monetary Authority of Singapore's (MAS) annual core inflation measure, which excludes the cost of accommodation and private road transport, inched down from 1.8% in August to 1.7% in September.
The MAS expects average inflation to be between 2.5% and 3.0% in 2013 and between 2.0% and 3.0% in 2014. FocusEconomics Consensus Forecast expect inflation to average 2.8% in 2013, which is down 0.1 percentage points from last month's estimate. For 2014, the panel sees average inflation at 3.0%, which is down 0.1 percentage points from last month's estimate.
Author: Dirina Mançellari, Senior Economist