Lower car prices help to ease inflation in September
24 Oct 2013|3,203 views
The Straits Times reported that inflation in Singapore eased last month as a result of the cost of cars dropping, though economists say this reprieve is likely temporary.
Consumer prices rose just 1.6 percent last month from the same month last year - much lower than the two percent increase which experts had expected.
Economists warn that inflation looks set to creep above two percent and possibly even cross three percent in the coming months, as car prices head north and services inflation gathers pace from a tight labour market.
Private road transport costs slid two percent last month after inching up 0.1 percent the previous month, data from the Singapore Department of Statistics showed yesterday. That alone shaved a 0.3 percentage point off overall inflation, said CIMB economist Song Seng Wun.
The correction in car prices was due to an unusually high figure in September last year with which the latest figure is compared. This 'high base effect' more than offset the rise in petrol prices, said the Monetary Authority of Singapore and Ministry of Trade and Industry.
The Straits Times reported that inflation in Singapore eased last month as a result of the cost of cars dropping, though economists say this reprieve is likely temporary.
Consumer prices rose just 1.6 percent last month from the same month last year - much lower than the two percent increase which experts had expected.
Economists warn that inflation looks set to creep above two percent and possibly even cross three percent in the coming months, as car prices head north and services inflation gathers pace from a tight labour market.
Private road transport costs slid two percent last month after inching up 0.1 percent the previous month, data from the Singapore Department of Statistics showed yesterday. That alone shaved a 0.3 percentage point off overall inflation, said CIMB economist Song Seng Wun.
The correction in car prices was due to an unusually high figure in September last year with which the latest figure is compared. This 'high base effect' more than offset the rise in petrol prices, said the Monetary Authority of Singapore and Ministry of Trade and Industry.
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