Latest Singapore Business News

Singapore's inflation expected to pick up in 2017

singapore inflation expected to pick up in 2017
 
Consumer Price Developments in November 2016

In November, both CPI-All Items inflation and MAS Core Inflation were higher, at 0.0% and 1.3% respectively compared to -0.1% and 1.1% in the previous month. This mainly reflected the pickup in services and food inflation.

CPI-All Items inflation was 0.0% y-o-y in November

CPI-All Items inflation rose to 0.0% in November from -0.1% in October, led by a stronger pickup in services fees and food prices.

Overall services inflation increased to 1.5% in November from 1.4% a month earlier. The progressive phasing down of the Transitional Subsidies for MediShield Life premiums contributed to the rise in the cost of medical & dental treatment.[1]

Meanwhile, air fares and telecommunication services fees declined. Food inflation also edged up to 2.0% from 1.9% in the previous month, due to a larger increase in the prices of non-cooked food items such as vegetables and fruits.

Private road transport cost rose by 0.2% after remaining unchanged in October, primarily due to the smaller drag posed by petrol pump prices. Accommodation cost fell by 3.8% in November, similar to the previous month, amid continued softness in the housing rental market.
 
singapore inflation picks up
 
CPI less imputed rentals on owner-occupied accommodation (CPI-ex OOA) rose by 1.0% in November
 
Inflation as measured by CPI less imputed rentals on owner-occupied accommodation (OOA) picked up to 1.0% in November from 0.8% in the preceding month, reflecting higher services and food inflation.

MAS Core Inflation rose to 1.3% in November

MAS Core Inflation rose to 1.3% in November from 1.1% in October, on account of the faster pace of increase in overall services and food prices.
 
singapore inflation expected to pick up in 2017
Raffles Place, Singapore
 
Outlook
 
On the external front, imported inflation is likely to rise mildly given ample supply buffers in the commodity markets and soft global demand conditions. Notwithstanding continued short-term volatility, global oil prices are expected to increase in 2017 from its trough this year. Domestically, overall cost pressures should be muted. Amid a pullback in hiring, conditions in the labour market have slackened. This will cap underlying wage growth, even as non-labour business costs have eased. The subdued growth environment will also constrain the extent of cost pass-through to consumer prices.
 
MAS Core Inflation is expected to average around 1% in 2016 before rising to 1–2% next year. Energy related components are projected to contribute positively to inflation in 2017, while the temporary disinflationary effects from budgetary measures will fade.[3]
 
However, the increase in core inflation will be gradual, given the absence of more generalised demand-induced price pressures. CPI-All Items inflation has troughed and is projected to pick up to 0.5–1.5% next year, from around -0.5% in 2016, largely reflecting the rise in private road transport cost.[4]
 

 
1. Government subsidies and support for MediShield Life premiums consist of permanent and transitional components. These measures lowered healthcare costs from November 2015 onwards, and dampened healthcare cost inflation on a year-ago basis from November 2015 to October 2016. The rise in healthcare cost inflation in November 2016 was due to the progressive phasing down of the Transitional Subsidies for MediShield Life premiums, as well as the effect of the low base in November 2015. The permanent component of the government subsidies and support for MediShield Life premiums is unchanged.

2. In October 2016, 1- and 2-room HDB households received a 1-month S&CC rebate, while 3-, 4- and 5-room HDB households received a 0.5-month rebate. No rebates were disbursed in November 2016.

3. The budgetary measures include the abolition of national examination fees for Singaporeans, the reduction in the concessionary foreign domestic worker (FDW) levy, and government subsidies and support for MediShield Life premiums.

4. The cost of private road transport is projected to rise in 2017, largely as a result of the expiry of the road tax rebate for petrol vehicles, the upward revision of car park charges with effect from 1 December 2016, and higher petrol prices.

Add comment

Emails are optional and for tracking replies. Names are unique; get yours today with a comment!


Security code
Refresh

La Business

Chinese economy expands 6.8% in Q3; Chinese Pres. Xi hopes for quality growth
Chinese economy expands 6.8% in Q3; Chinese Pres. Xi hopes for quality growth

  Turning our focus to China's Communist Party Congress... held to plan its econom [ ... ]

Read more la
Trump interviews four for Fed chair job, to decide next month
Trump interviews four for Fed chair job, to decide next month

  President Trump has interviewed four candidates to potentially replace Janet [ ... ]

Read more la
Gold price hits its highest level this year amid geopolitical uncertainties
Gold price hits its highest level this year amid geopolitical uncertainties

  Amid the uncertainties on the Korean peninsula,... the price of gold has climbed t [ ... ]

Read more la
U.S. Federal Reserve keeps benchmark interest rates unchanged
U.S. Federal Reserve keeps benchmark interest rates unchanged

  Turning overseas,... the U.S. Federal Reserve kept its rates steady,... but  [ ... ]

Read more la
European Central Bank holds rates steady, but hints at possible stimulus easing in fall
European Central Bank holds rates steady, but hints at possible stimulus easing in fall

  The European Central Bank has once again frozen rates at zero-percent... and left  [ ... ]

Read more la
Microsoft to lay off thousands staff globally amid restructuring
Microsoft to lay off thousands staff globally amid restructuring

  Microsoft is laying off thousands of workers in its sales and marketing department [ ... ]

Read more la
U.S. approves $1.4 bil. arms sale to Taiwan
U.S. approves $1.4 bil. arms sale to Taiwan

  The U.S. State Department plans to sell about one-point-four billion dollars-worth [ ... ]

Read more la
AIIB annual meeting wraps up
AIIB annual meeting wraps up

  The Asian Infrastructure Investment Bank has wrapped up its second annual meetin [ ... ]

Read more la
U.S. Fed raises benchmark interest rate for third consecutive quarter
U.S. Fed raises benchmark interest rate for third consecutive quarter

  In a widely anticipated move,... the Federal Reserve has announced its second rate [ ... ]

Read more la
OECD projects gradual recovery for world economy
OECD projects gradual recovery for world economy

  The world economy is on the mend, according to the OECD, which released its bian [ ... ]

Read more la
Samsung takes 13% of global smartphone operating profit
Samsung takes 13% of global smartphone operating profit

  New data show the global smartphone market being winnowed down to just a couple of [ ... ]

Read more la
U.S. Federal Reserve eyes reversal of quantitative easing measures
U.S. Federal Reserve eyes reversal of quantitative easing measures

  The U.S. Federal Reserve is determined to reduce its bond holdings later this year [ ... ]

Read more la
Moody's downgrades China's credit rating from Aa3 to A1
Moody's downgrades China's credit rating from Aa3 to A1

  Credit ratings agency Moody's has downgraded China's credit rating from double-A-3 [ ... ]

Read more la
TPP countries agree to revive trade deal without U.S.
TPP countries agree to revive trade deal without U.S.

  Asia-Pacific trade ministers have agreed to explore options for continuing with th [ ... ]

Read more la

Our Sponsors


mbs1-vjj2

La Latest

Chinese economy expands 6.8% in Q3; Chinese Pres. Xi hopes for quality growth

  Turning our focus to China's Communist Party Congress... held to plan its econom [ ... ]

Read more la
New AlphaGo Zero learns without help from humans

  Google's AI subsidiary DeepMind has unveiled the latest version of its Go-pl [ ... ]

Read more la
Owners elated to find dog alive after wildfires

  When Jack Weaver hiked to his mother’s home in California, he expected the fam [ ... ]

Read more la
Ousted President Park Geun-hye speaks out for first time since arrest in March...

  Park Geun-hye spoke out in court. The impeached leader slammed the move to keep [ ... ]

Read more la
North Korea one of seven nations seen as global cyber powers: Vox

  A U.S.-based media outlet claims North Korea has some of the best hacking capabi [ ... ]

Read more la
Firefighters rescue disabled woman from California blaze

  Dramatic body camera footage shows firefighters in California's wine country res [ ... ]

Read more la
Prehistoric Culture Festival 2017 takes off in Seoul

  Unbeknownst to many Seoulites... there's actually a prehistoric settlement site  [ ... ]

Read more la
Clashes break out in Paris during public sector strike

  Police in Paris clash with protesters during a demonstration over public sector  [ ... ]

Read more la

La Entertain

Demi Lovato and Paris Hilton weigh in on Weinstein scandal

  Demi Lovato and Paris Hilton have weighed in on the Harvey Weinstein scandal at th [ ... ]

Read more la
Taylor Swift wins sexual assault case against ex-DJ

  Singer Taylor Swift wins a sexual assault case against former radio DJ David M [ ... ]

Read more la
K-Pop star T.O.P gets suspended sentence for marijuana use

  One of the biggest K-pop artists in Korea is set to spend time behind bars for use [ ... ]

Read more la
Song Joongki Song Hyekyo to be married in Oct17; baby made-in-bali?

  Two of Korea's best-loved stars have announced they're tying the knot.   So [ ... ]

Read more la
Jay Chou's son looks like mother or grandmother?

On 20 June 2017, Jay Chou confirms the birth of his second baby, a baby son, with a good effort on h [ ... ]

Read more la
Edison Chen welcomes daughter Alaia Chen with wife Qin Shupei

Strongest player in Asia, Edison Chen, seems to have finally stopped playing... we think.... to sett [ ... ]

Read more la
Hannah Quinlivan gives birth to son for Jay Chou?

Hannah Quinlivan is heavily pregnant with Jay Chou's second baby - a baby son.   Media foreca [ ... ]

Read more la
Wallace Huo grows longer with Zhou Xun at Shanghai Film Festival 2017

At the opening of the Shanghai Film Festival on 17 Jun 2017, long-time-no-see Wallace Huo and co-sta [ ... ]

Read more la