Singapore: Inflation comes in at highest level since May 2014 in April
Consumer prices dropped 0.17% from the previous month in April, contrasting March’s 0.22% rise. April’s result marked the sharpest fall in prices since October 2020 and was primarily driven by tumbling transport costs.
Inflation increased to 2.1% in April, up from March’s 1.3%. April’s figure marked the highest inflation rate since May 2014 and was in part aided by a healthy base effect on the back of April 2020’s sharp decline in prices. The annual average variation of consumer prices rose to 0.1% in April (March: -0.1%). Core inflation rose to 0.6% in April, from the previous month’s 0.5%.
Regarding to outlook for inflation, analysts at The Economist Intelligence Unit commented:
“Consumer demand will firm in 2021 owing to more lenient social restrictions and a broader economic recovery. As a result, we expect consumer prices to increase by an average of 1.8% in 2021, following a decline of 0.2% in 2020, aided by a rebound in global energy and non-energy commodity prices as well as firmer consumer demand. However, price inflation for tourism-related services will remain weak amid ongoing restrictions on international travel.”