Singapore’s deflation eased in November, with both core and headline inflation at -0.1 percent year-on-year, compared to -0.2 percent in October, according to the Department of Statistics (Singstat) consumer price index (CPI) figures on 23 December.

Singapore's deflation eases in November (Photo: businesstimes.com.sg)

November’s slower rate of decline was due to smaller falls in the costs of services, and electricity and gas, as well as higher food inflation.

Private transport and accommodation inflation - part of the headline measure but excluded from core inflation - stayed unchanged from the month before, at -1.3 percent and 0.3 percent respectively.

Services inflation was -0.2 percent, less steep than October's -0.5 percent figure, due mainly due to a smaller decline in outpatient services fees and an increase in the costs of recreational and cultural services.

The cost of electricity and gas fell 6.8 percent, slowing from October's 7.2 percent fall, as targeted utilities rebates ceased in October 2020.

Meanwhile, the cost of retail and other goods fell more sharply, with inflation at -2.0 percent in November, steepening from -1.6 percent in October.

In Singstat's release, food, household durables and services, and communication were the only three categories with positive inflation year on year in November.

In a joint statement, the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) maintained an unchanged inflation outlook from the previous two months, with core and headline inflation ranging from -0.5 percent to zero percent in 2020. Core inflation for 2021 is expected at 0-1 percent, while headline inflation if forecast at -0.5 percent-0.5 percent.

Source: VNA