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

Huawei signs deal with Russian telecoms firm to develop 5G
Huawei signs deal with Russian telecoms firm to develop 5G

  China's Huawei has signed a deal with Russian telecoms firm MTS to develop 5G  [ ... ]

Read more la
Mastercard drops Neymar from campaign amid rape allegation
Mastercard drops Neymar from campaign amid rape allegation

  Mastercard has canceled a planned advertising campaign featuring Brazilian s [ ... ]

Read more la
World Bank downgrades 2019 global economic outlook to 2.6%
World Bank downgrades 2019 global economic outlook to 2.6%

  The World Bank has downgraded its global economic outlook for this year to two [ ... ]

Read more la
Fed Chairman Jerome Powell hints at possible rate cut if necessary, citing trade war with China
Fed Chairman Jerome Powell hints at possible rate cut if necessary, citing trade war with China

  The head of the U.S. Federal Reserve has hinted at a possible interest rate  [ ... ]

Read more la
Generation Z seeks fun and relies on influencers when shopping
Generation Z seeks fun and relies on influencers when shopping

  It appears those born in the mid-90s or later - have unique shopping habits... [ ... ]

Read more la
China's Huawei holds world's No. 2 smartphone spot in Q1: Report
China's Huawei holds world's No. 2 smartphone spot in Q1: Report

  China's telecom company Huawei maintained its spot as the world's second-l [ ... ]

Read more la
Fiat Chrysler proposes merger with Renault
Fiat Chrysler proposes merger with Renault

  Italian-American automaker Fiat Chrysler proposed joining forces with French [ ... ]

Read more la
Huawei calls on Korean chipmakers to continue their parts supply
Huawei calls on Korean chipmakers to continue their parts supply

  South Korean companies are finding themselves stuck in the middle of t [ ... ]

Read more la
Huawei kicked out from Wi-Fi Alliance, SD Association, other standard groups
Huawei kicked out from Wi-Fi Alliance, SD Association, other standard groups

  The bad news keeps piling up for under-fire Huawei.
Reports say the Chinese [ ... ]

Read more la
Trump announces new US$16 bil. aid package for American farmers hit by trade war
Trump announces new US$16 bil. aid package for American farmers hit by trade war

  U.S. President Donald Trump has announced a new 16 billion dollar aid package  [ ... ]

Read more la
IMF says US companies are paying China tariff costs
IMF says US companies are paying China tariff costs

  The International Monetary Fund says companies in the U.S. are paying al [ ... ]

Read more la
Reaction to collapse of Jamie Oliver’s restaurant chain
Reaction to collapse of Jamie Oliver’s restaurant chain

  Jamie Oliver's restaurant chain has become the latest to collapse into adminis [ ... ]

Read more la
US slows hiring of Chinese nationals by chip makers
US slows hiring of Chinese nationals by chip makers

  The United States is slowing approvals for its semiconductor companies to hire [ ... ]

Read more la
'Boycott Apple' Movement grows in China as U.S. goes after Huawei
'Boycott Apple' Movement grows in China as U.S. goes after Huawei

  The intensifying trade war between China and the U.S. is prompting Chinese [ ... ]

Read more la

Our Sponsors


La Latest

Facebook to launch its own global cryptocurrency 'Libra' by 2020

  Facebook is set to launch a global cryptocurrency called 'Libra' by 2020.  [ ... ]

Read more la
Boris Johnson solidifies lead in race to succeed Theresa May as British PM

  In the U.K.,... Boris Johnson remains the clear frontrunner in the race to [ ... ]

Read more la
Carrie Lam apologizes but Hong Kong citizens vow to continue protests

  Hong Kong's Chief Executive Carrie Lam has apologized to the island's citi [ ... ]

Read more la
Chinese President Xi Jinping to visit North Korea this week

  We begin with news out of China and North Korea. It appears Pyeongyang wi [ ... ]

Read more la
US company Beyond Meat to start making plant-based 'ground beef'

  The U.S. company Beyond Meat, which makes vegan burgers and sausages, is set [ ... ]

Read more la
Seoul to host Asia's largest animation festival SICAF in July

  Seoul is set to host Asia's largest animation festival in July.   T [ ... ]

Read more la
Trump slams report on US cyber intrusions into Russia's power grid

  U.S. President Donald Trump has strongly criticized a New York Times rep [ ... ]

Read more la
ASEAN WEEK 2019 showcases culture and fashion from 10 ASEAN countries

  The ASEAN cultural festival opened on Friday in celebration of 30 years of dialogu [ ... ]

Read more la

La Entertain

BTS tours Japan next month, starting from Osaka

  Ticket sales from this year's world tour by K-pop group BTS have reached alm [ ... ]

Read more la
France's Lumiere Film Festival likes 'Parasite' director

  South Korean director Bong Joon-ho has been invited to this year's Lumiere F [ ... ]

Read more la
Netmarble to release 'BTS World' mobile game on June 26

  Local game maker Netmarble will release its new mobile game "BTS World" global [ ... ]

Read more la
Korea vs China Dance Off in Seoul

  An event was held today in Seoul to promote friendship between China and S [ ... ]

Read more la
BTS and Bang Si-hyuk to join voting for Grammy Awards

  K-Pop sensations BTS and their chief producer have clinched memberships to the [ ... ]

Read more la
Timeless beauty Joey Wong eats dumplings to stay young @ 52

On 7 June 2019, Joey Wong Choyee (52, also known as Wang Tsu Hsien) shares with us photos of her cel [ ... ]

Read more la
NCT 127's new album ranks 11th on Billboard 200 album chart

  K-pop boy band NCT 127 has ranked 11th on the Billboard 200 album chart wi [ ... ]

Read more la
Lin Chiling suddenly married to Exile Akira; countless hot nights in kabukicho so boyfriend turns husband desu ne

6 June 2019 (6/6/2019) - Taiwanese top model Lin Chiling (44) shares with fans today that she has ju [ ... ]

Read more la