Singapore CPI Eases For October 2012
The Consumer Price Index-All Items inflation of Singapore lowered to four percent in October this year from 4.7 percent the previous month. According to a report by the Ministry of Trade and Industry, the easing of inflation is due to only marginal increases in private road transport and accommodation costs. These two indices account for almost two-thirds of the CPI-All Items inflation for October.
From 10.8 percent in September this year, the rise in private transport costs slowed down to 8.3 percent in October. According to the MTI report, this price improvement made up more than half of the value by which the inflation rate slowed down this month.
Meanwhile, the inflation of accommodation costs was pegged at 6.8 percent, which is again 0.9 percent lower than the September value of 7.7 percent. The MTI attributes this to the “dissipation of the base effects” in connection with the Service and Conservancy Charges as well as HDB rental rebates.
The inflation on imputed rentals on owner-occupied accommodation or OOA also eased to 1.3 percent, while food also slowed down to 1.7 percent from 2.1 percent the month before. Oil prices, one of the most volatile in the index, also slowed down its price increases as it mirrored the moderate movement of the global crude oil prices.
The only exception is the inflation of costs on services, which rose to 3.1 percent from 3.0 percent. This, according to the MTI, is due to pricier holiday travel costs and household services.
Inflation measures the behaviour of prices of basic goods and services across major industries in an economy. High inflation rates mean prices are volatile and can change as often as every single day, such as oil prices. Items that are prone to inflation are often dependent on world price indices as well. Low inflation rates mean relatively stable prices, and are almost always considered more favourable.