Singapore’s headline inflation – or CPI-All items inflation – rose to 4.7% on a y-o-y basis in October, higher than the 4.1% print in September.
Monetary Authority of Singapore (MAS) core inflation, which excludes accommodation and private transport, also picked up to 3.3% on a y-o-y basis, higher than the 3.0% growth seen in September.
The higher core inflation was attributed to higher inflation for services, which saw inflation increase due to higher holiday expenses as well as tuition and other fees, and outpatient and hospital services costs. Retail and other goods, which saw the higher prices of personal care products and medical goods, also led to the higher core inflation in October. Finally, higher inflation in electricity and gas, which was due to higher tariffs, was also another factor.
The higher headline inflation was due to higher private transport inflation, which was driven by a faster increase in car prices, as well as higher core inflation.
The MAS and the Ministry of Trade and Industry (MTI) have kept their estimates intact, with headline inflation for the year coming in at 5% and core inflation at 4%. Core inflation is still expected to edge down to between 2.5% to 3.0% in December.
However, MAS and MTI add that headline inflation may see more fluctuations in the remaining months of the year amid the recent swings in certificate of entitlement (COE) premiums. Headline inflation is, however, expected to decline over the course of next year as private transport inflation slows in tandem with an expected increase in COE quotas. Accommodation inflation is also projected to ease as the supply of completed housing units increases.
