Singapore consumer prices declined further in April largely on account of a decline in oil-related products and a moderation in services inflation, data published by Ministry of Trade and Industry showed Monday.
Consumer prices fell by 0.5 percent from last year, confounding expectations for an increase of 0.1 percent. This was the sixth consecutive fall in prices. In March, prices were down 0.3 percent.
The cost of oil-related items slid 11.7 percent in April, following the 7.9 percent decrease in the preceding month, as electricity tariffs were reduced further owing to lower global oil prices.
At the same time, services inflation eased to 1.1 percent from 1.5 percent a month earlier, largely led by a fall in holiday travel cost and the waiver of national examination fees. Food inflation was stable at 2.1 percent.
Accommodation cost was 2.5 percent lower, extending the 2.2 percent decline in the previous month, reflecting the soft housing rental market.
Consequently,core inflation that excludes the costs of accommodation and private road transport, slowed to 0.4 percent from 1 percent.
Month-on-month, consumer prices dropped 0.6 percent reversing a 0.2 percent rise in March. Core consumer prices were down 0.3 percent compared to a 0.1 percent fall a month ago.
MAS core inflation and overall inflation could ease further before rising towards the end of the year and into 2016, as global oil prices pick up and the effects of the budgetary measures dissipate, the ministry said.
For 2015, MAS core inflation is projected to average 0.5 to 1.5 percent and overall inflation is forecast to average -0.5 to 0.5 percent.
The material has been provided by InstaForex Company – www.instaforex.com