SINGAPORE – Singapore’s core inflation rose in August, driven by higher inflation for services, retail and other goods, and food.
Core inflation – which excludes private transport and accommodation to better reflect household expenses – came in at 2.2 per cent, up from 2 per cent in July, according to the Singapore Department of Statistics (SingStat) on Sept 23.
Overall inflation increased to 2.3 per cent in August, from 2.2 per cent in July, as higher core inflation more than offset lower private transport inflation.
Private transport inflation slowed to 7.5 per cent in August, from 8 per cent in July, due to a smaller increase in car prices.
Services inflation rose to 2 per cent in August, from 1.7 per cent in July, as airfares and prices of point-to-point transport services climbed at a faster pace.
Retail and other goods inflation rose to 1.8 per cent in August, from 1.4 per cent in July, due to higher inflation in clothing and footwear and personal care products.
Food inflation crept up to 2.3 per cent in August, from 2.2 per cent in July, due to higher food services inflation, even as non-cooked food inflation moderated.
Electricity and gas prices inflation was unchanged at 8.7 per cent as electricity prices rose at a similar pace in August as in July.
“Elevated global energy prices have led to increases in Singapore’s electricity and gas tariffs and higher transportation fares,” the Monetary Authority of Singapore and Ministry of Trade and Industry said in a joint statement on Sept 23.
“Global oil prices remain high and volatile, while adverse weather conditions are expected to lower agricultural yields and raise Singapore’s imported food prices.
“As higher input costs pass through global supply chains, the prices of a wider range of Singapore’s imported goods and services are expected to pick up in the quarters ahead.”
Accomodation inflation was unchanged at 0.8 per cent, with housing rents increasing in August at the same pace as in July.
