Singapore’s inflation eased to 0.1% in October on back of lower transport costs

Housing costs continued to soften.

Singapore’s Consumer Price Index-All Items inflation slowed to 0.1% in October from 0.6% in September, mainly on account of base effects associated with fluctuations in car Certificate of Entitlement (COE) premiums, as well as sharper declines in the costs of accommodation and oil-related items.

Private road transport cost decreased by 5.6%, following the 2.8% fall in September, largely due to the high base a year ago. 

Accommodation cost declined by 1.0%, extending the 0.6% correction in the previous month, as a result of the soft housing rental market. 

Prices of oil-related items, including electricity tariffs and petrol pump prices, fell by 2.1% in October after edging down by 0.6% in the preceding month, given the recent weakness in global oil prices. 

Food inflation moderated to 2.8% from 3.0% in September, as prices of both non-cooked food items and prepared meals rose at a slower pace. 

Services inflation came in at 1.7%, unchanged from the preceding month, as the higher costs of recreation & entertainment and holiday travel were offset by smaller increases in school tuition fees and household services cost.