Singapore inflation eased to 0.6% in September on back of lower housing costs

But food inflation inched up last month.

The Ministry of Trade and Industry and the Monetary Authority of Singapore today revealed that Singapore’s CPI-All Items inflation eased to 0.6% in September from 0.9% in August, on account of a smaller increase in services costs and a further decline in accommodation cost.

Services inflation slowed to 1.7% in September from 2.1% in the preceding month. This was mainly due to the moderation in the increase in medical and dental treatment fees, from 4.6% in August to 2.4% in September, which reflects the impact of enhanced medical subsidies, including the Pioneer Generation Package.

However, the contributions of telecommunication services, tertiary education and air transport were higher compared to August. 

Accommodation cost fell by 0.6%, extending the 0.2% decline in the previous month, as a result of the soft housing rental market. 

Private road transport cost was lower by 2.8%, after falling by 2.9% in August, reflecting the more moderate decline in COE premiums relative to a year ago.

Food inflation was higher at 3.0% compared to 2.9% a month ago, mainly due to a steeper increase in the prices of prepared meals.