Singapore's core inflation declines to -0.1% in November as retail cost falls
23 December, 2020
Consumer prices found in Singapore declined found in November, due to authorities forecast a good "mildly positive" submit 2021.
Core inflation fell to -0.1 per cent year-on-year in November, weighed against October's -0.2 %, data from the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) showed on Wednesday (Dec 23).
The slower rate of decline in November was due mainly to a smaller fall in the costs of companies and electricity and gas, together with higher food inflation.
Offerings costs fell by 0.2 % in November, mainly due to a smaller decline in outpatient services costs and an increase found in recreational and cultural offerings costs, the firms said.
The cost of electricity and gas fell more modestly by 6.8 per cent in November, compared to the -7.2 % found in October, as targeted utility rebates ceased found in the month before.
Food inflation edged up by 1.8 per cent in November, primarily because of a steeper increase in the costs of non-cooked food and restaurant meals.
The expense of retail and other goods fell more sharply by -2 per cent. This was because of a larger decline in the costs of clothing and footwear and a slower pace of upsurge in the cost of household durables.
Private transfer costs and lodging inflation stayed unchanged on November in comparison to October, at -1.3 % and 0.3 % respectively.
MAS and MTI retained their outlook from October on external inflation remaining low, amid weak demand found in key commodity markets and “the persistence of negative output gaps” in Singapore’s major trading partners.
"On the domestic front, cost pressures are expected to remain subdued, with the accumulated slack found in the labour market weighing on wages," said MAS and MTI.
“Nevertheless, core inflation is certainly forecast to carefully turn mildly positive on 2021, as the disinflationary ramifications of government subsidies introduced this season fade and demand for a few domestic services gradually accumulates."
Accommodation costs are expected to fall as rentals could soften, thanks in part to the decline found in foreign employment, said the organizations.
Private transport costs will need to rise modestly ahead of an anticipated decrease in Certificate of Entitlement supply next year.
MAS and MTI forecast core inflation and overall inflation to can be found in at between -0.5 % and 0 % in 2020.
In 2021, core inflation is likely to average 0 % to 1 1 %, while overall inflation is likely to be between -0.5 per cent and 0.5 per cent.
Last month, MTI said the Singapore economy is definitely likely to shrink between 6 % and 6.5 % this year.
Source: www.channelnewsasia.com
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