Singapore’s core inflation eases to 2% in September

Singapore's core inflation eased to 2% in September, according to data released by the Singapore Department of Statistics on October 23. This decline contrasts with 2.2% in August, indicating a slowdown in inflationary pressures within the economy. Core inflation, which excludes private transport and accommodation costs, provides a clearer picture of household expenses.

Overall inflation for September stood at 2.2%, a reduction from 2.3% in the previous month. This downward trend is attributed to decreasing inflation rates in services, retail, other goods, and private transport sectors. Private transport inflation slowed to 7.1% from 7.5% in August and 8% in July. The slowdown is primarily due to a more gradual increase in car prices.

Accommodation inflation rose to 0.9% in September from 0.8% in August. This increase is primarily driven by a faster pace of rise in housing rents. Meanwhile, services inflation dropped to 1.7% from 2% in August, mainly due to a smaller increase in point-to-point transport service costs and a significant decline in telecommunication service prices.

Retail and other goods inflation decreased to 1.2% in September from 1.8% in the previous month. This reduction is attributed to declining furniture prices and slower increases in clothing prices. Food inflation increased slightly to 2.4%, from 2.3% in August and 2.2% in July. The rise in food inflation is due to higher inflation in both non-cooked food and food services.

Interestingly, electricity and gas prices inflation remained unchanged at 8.7% for September. This stability is primarily due to electricity prices rising at a similar pace as in August.