The National Statistical Office of Singapore has released its latest data, revealing a deceleration in inflation during the month of August. Both the Consumer Price Index (CPI), which measures consumer spending-driven inflation, and the Core Consumer Price Index (Core CPI) experienced a slowdown.
According to the report, the CPI increased by 4.0% year-on-year in August. This rate of growth represented a moderation from the previous month, as July had witnessed a 4.1% increase. It’s noteworthy that this figure closely aligned with economists’ expectations, who had anticipated a 4.05% rise.
Key components contributing to the CPI were transportation costs, which constituted 17.07% of the index. These costs climbed by 4.8% in August, surpassing July’s 3.7% increase. Additionally, housing and utility expenses, accounting for 24.84% of the CPI, experienced a 3.8% uptick in August, slightly below July’s 3.9% rise.
On the other hand, food prices, responsible for 21.10% of the CPI index, increased by 4.8% in August. Although this represented a slowdown from the 5.3% rise observed in July, it remained a significant driver of inflation.
Meanwhile, the Core CPI, which excludes private sector land transportation and accommodation costs, registered a 3.4% increase. This rate marked a slowdown compared to the 3.8% uptick recorded in July and was also lower than the 3.55% increase anticipated by economists.
The deceleration in inflation observed in August reflects a complex interplay of economic factors, including fluctuations in transportation and housing costs, as well as food price dynamics. This moderation is closely monitored by policymakers and economists as it can have significant implications for overall economic health and monetary policy decisions.
As Singapore continues to navigate its economic landscape, tracking inflation trends remains pivotal in understanding the broader economic picture and ensuring stability in the country’s financial markets.