Singapore: Inflation increases in August
September 23, 2013
In August, consumer prices rose 0.8% over the previous month, which is above the 0.3% increase observed in July. According to Statistics Singapore, the monthly reading came mainly on the back of increasing prices for accommodation.
Annual inflation met market expectations and inched up from 1.9% in July to 2.0% in August. Annual average inflation, however, decreased from 3.3% in July to 3.1% in August.
The Monetary Authority of Singapore's (MAS) annual core inflation measure, which excludes the cost of accommodation and private road transport, edged up from 1.6% in July to 1.8% in August.
The MAS expects average inflation to range between 2.0% and 3.0% in 2013. FocusEconomics Consensus Forecast panelists see inflation at the upper limit of MAS's forecast range. They 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