Singapore records higher headline and core inflation in November on rebound in services and food inflation

Singapore’s headline inflation came in higher in November at 0.0 percent year-on-year, as compared with -0.1 percent recorded in the prior month. MAS core inflation was also up at 1.3 percent from 1.1 percent. The rise in inflation mainly reflected the rebound in services and food inflation, according to Monetary Authority of Singapore.

CPI-All Items inflation accelerated in November, driven by a stronger pickup in services fees and food prices. In all, services inflation rose to 1.5 percent in November from 1.4 percent in October. The progressive phasing down of the Transitional Subsidies for MediShield Life premiums added to the rise in the cost of medical and dental treatment.

In the meantime, airfares and telecommunication services fees fell. Food inflation also rose to 2 percent from 1.9 percent in October because of larger rise in prices of non-cooked food items such as vegetables and fruits.

Private road transport cost was up 0.2 percent after staying the same in October, mainly because of the smaller drag posted by petrol pump prices. Cost of accommodation dropped 3.8 percent in November, same as in the prior month, in the midst of continued weakness in the housing rental market.

“Inflation as measured by CPI less imputed rentals on owner-occupied accommodation (OOA) picked up to 1.0 percent in November from 0.8 percent in the preceding month, reflecting higher services and food inflation”, stated MAS.