Does Singapore’s CPI turnaround signal reflation or stagflation ahead?

SINGAPORE (Jan 23): Singapore has registered a rise in consumer prices for the first time in two years with headline inflation coming in 0.2% in Dec 2016, according to a joint release between the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI).

While private road transport cost and services inflation increased by 1.7% and 1.6% on the account of higher petrol prices/car park fees, and a faster pace of increase in holiday expenses, respectively, food inflation remained unchanged at 2%.

Accommodation cost fell by 3.8% in December due to continued softness in the housing rental market – while overall retail goods inflation also eased from 0.2% in November to 0% in December, largely attributable to a fall in the prices of personal care products following the rise in November.

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