Singapore inflation falls to 0.1 per cent in October, near a five-year low

Inflation in Singapore eased further in October, according to the Department of Statistics. -- ST PHOTO: ALPHONSUS CHERN
Inflation in Singapore eased further in October, according to the Department of Statistics. -- ST PHOTO: ALPHONSUS CHERN

Inflation in Singapore eased further in October, due to fluctuations in COE premiums and declines in costs of accommodation and oil-related items, the Department of Statistics said on Monday.

The consumer price index (CPI) came in at 0.1 per cent year-on-year in October, sharply lower than September's 0.6 per cent and the lowest since December 2009.

Economists polled by Reuters had expected October inflation to hold level against September's numbers.

Core inflation - which excludes changes in the price of private road transport and accommodation - fell to an eight-month low of 1.7 per cent year-on-year in October, down from 1.9 per cent the previous month. This was largely due to the steeper decline in electricity tariffs, the Ministry of Trade and Industry (MTI) and Monetary Authority of Singapore (MAS) said in a joint news release.

For October, private road transport costs decreased by 5.6 per cent, following the 2.8 per cent fall in September, largely due to the high base a year ago, while accommodation costs fell 1 per cent, extending the 0.6 per cent correction in the previous month due to the soft housing rental market

Prices of oil-related items, including electricity tariffs and petrol pump prices, fell by 2.1 per cent in October after dipping 0.6 per cent the previous month on the back of weaker global oil prices.

Food inflation moderated to 2.8 per cent from 3 per cent in September, as prices of both non-cooked food items and prepared meals rose at a slower pace.

Services inflation came in at 1.7 per cent, unchanged from the preceding month, as the higher costs of recreation and entertainment and holiday travel were offset by smaller increases in school tuition fees and household services cost.