Singapore: Inflation slows to a 38-month low in April
May 23, 2013
In April, consumer prices fell 1.5% over the previous month, which followed the 0.5% decline observed in March. According to Statistics Singapore, prices decreased the most in transport, as well as in housing. An additional comment by the Monetary Authority of Singapore (MAS) revealed that the decrease reflected lower car prices as well as lower accommodation costs resulting from the government's policy measures.
As a result of the monthly reading, annual inflation plunged from 3.5% in March to 1.5% in April, which was well below market expectations that had inflation moderating to 3.0%. In fact, the reading represented the lowest inflation level observed in 38 months. In addition, annual average inflation fell from 4.4% in March to 4.0% in April.
Meanwhile, the Monetary Authority of Singapore's annual core inflation measure, which excludes the costs of accommodation and private road transport, edged down from 1.7% in March to 1.4% in April.
The MAS expects average inflation to range between 3.0% and 4.0% in 2013. FocusEconomics Consensus Forecast panellists expect inflation to average 3.5% in 2013, which is down 0.1 percentage points from last month's estimate. For 2014, the panel sees average inflation at 3.4%.