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Singapore: Food and private transport drive inflation down

Staff Writer |
In August, consumer prices in Singapore grew 0.3% from the previous month, contrasting July’s 0.2% fall.

According to Statistics Singapore, the result was particularly driven by higher prices for accommodation.

Inflation declined from July’s 0.6% to 0.4% in August, undershooting market expectations of a 0.6% print.

The deceleration itself was driven by softer price increases for food and private road transport. Meanwhile, annual average inflation remained unchanged at July’s over two-year high of 0.4%.

The Monetary Authority of Singapore’s (MAS) core inflation measure, which excludes the cost of accommodation and private road transport, came in at 1.4% in August, slightly down from July’s 1.6% reading.

The MAS expects average inflation to be between 0.5% and 1.5% in 2017.

FocusEconomics Consensus Forecast panelists expect inflation to rest comfortably within MAS’s expectations at 1.0% in 2017, which is unchanged from last month’s estimate.

For 2018, the panel sees average inflation at 1.4º%.

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