2014.11.2400:58:00UTC+00Singapore Inflation Eases Sharply In October

Singapore's consumer price inflation eased for the fifth straight month to a near 5-year low in October due to the base effects associated with fluctuations in car certificate of entitlement premiums and declines in the costs of accommodation and oil-related items.

Consumer prices rose only 0.1 percent annually in October compared to a 0.6 percent rise in the previous month, figures from the Ministry of Trade and Industry showed Monday. Economists had forecast the inflation rate to remain unchanged at 0.6 percent.

Accommodation cost dropped 1.0 percent, extending the 0.6 percent decline seen in the prior month. This was mainly due to the soft housing rental market. Food inflation moderated to 2.8 percent from 3.0 percent September.

Meanwhile, services inflation came in at 1.7 percent in October, same as in the previous month.

The core inflation, which excludes the costs of accommodation and private road transport, eased to 1.7 percent in October from 1.9 percent a month ago. Month-on-month, consumer prices dropped 0.4 percent, following a 0.1 percent fall registered last month.

The MTI and the Monetary Authority of Singapore said core inflation is likely to remain firm. For the whole year, it is projected to average 2-2.5 percent in 2014 and 2-3 percent in 2015.

For the whole year, overall inflation is projected to come in at 1-1.5 percent in 2014 and 0.5-1.5 percent in 2015.