Singapore: Inflation stable in September, while core inflation eases slightly
October 23, 2018
Consumer prices were flat over the previous month in September, following a 0.4% uptick in August. According to data released by Statistics Singapore, higher prices for education and food were offset by lower prices for housing and utilities, and communication.
Inflation increased 0.7% in September, rising by the same rate as in August, while annual average inflation was stable at 0.4%. Meanwhile, the Monetary Authority of Singapore’s (MAS) core inflation measure, which omits the costs of accommodation and private road transport, inched down to 1.8% in September from 1.9% in August on softer retail and food inflation.
Singapore Inflation Forecast
Going forward, imported inflation is likely to pick up slightly on higher oil prices, while domestic cost pressures should build on faster wage increases and strong domestic demand. The MAS expects CPI inflation to average between 1.0% and 2.0% in 2019, and core inflation to average between 1.5% and 2.5%. FocusEconomics Consensus Forecast panelists expect inflation to average 1.3% in 2019, which is unchanged from last month’s forecast. In 2020, panelists expect average inflation of 1.2%.
Author: Lindsey Ice, Economist