September inflation still mild at 0.4% as home rentals stay soft but cost of services rises

Food inflation was 1.2 per cent in September, the same as in August, as the prices of non-cooked food and prepared meals rose at a similar pace in both months.
Food inflation was 1.2 per cent in September, the same as in August, as the prices of non-cooked food and prepared meals rose at a similar pace in both months.PHOTO: ST FILE

SINGAPORE - Singapore's mild run of inflation continued last month with the consumer prices up 0.4 per cent year on year, an unchanged pace from August and in line with analyst expectations.

Higher prices for services offset larger decline in car prices, as well as a smaller year-ago increase in petrol prices, the Monetary Authority of Singapore (MAS) and Ministry of Trade & Industry said in a joint report on Monday (Oct 23).

Services inflation rose to 1.5 per cent in September from 1.4 per cent a month earlier, mainly due to a faster pace of increase in telecommunication services fees, which more than offset a smaller rise in holiday expenses and a larger decline in air fares.

Private road transport inflation eased to 2.1 per cent in September from 2.6 per cent in August.

Accommodation costs fell by 3.9 per cent, the same rate of decline as in August, amid continued softness in the housing rental market.

Food inflation was 1.2 per cent in September, the same as in August, as the prices of non-cooked food and prepared meals rose at a similar pace in both months.

The MAS core inflation measure, which strips out accommodation and private road transport costs that tend to be more influenced by government policy, rose to 1.5 per cent in September from 1.4 per cent in August, due to higher services inflation.

This was slightly higher than the 1.4 per cent increase tipped by analysts.