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PR Newswire
24-11-2010, 07:14 AM
Business Times - 24 Nov 2010
October CPI up 3.5% on higher car, home prices
Inflation slightly lower than September's 3.7% increase
By TEH SHI NING
SINGAPORE'S inflation eased a little in October, though economists still expect it to exceed 4 per cent by the end of this year.
October's consumer price index (CPI) rose 3.5 per cent from a year earlier due to higher housing, transport, food and recreation costs, slowing from September's inflation rate of 3.7 per cent.
The index was also 0.5 per cent higher in October compared to September, the Department of Statistics (DOS) said yesterday.
Driving the consumer price inflation in October were steeper car and petrol prices, which sent transport costs 9.5 per cent higher year on year.
Higher accommodation costs and electricity tariffs led to a 3.5 per cent year-on-year rise in housing costs, the other key contributor to inflation in October.
HSBC economist Leif Eskesen observed that 'private housing prices and rents remain high and are still growing at a healthy pace despite the macro-prudential tightening measures implemented a few months ago'.
He thinks this will spill over to prices in the HDB market and add to broader demands for compensating wage hikes.
Excluding accommodation costs, the CPI rose 3.5 per cent in October from a year ago.
JPMorgan economist Matt Hildebrandt worked out that core inflation - which strips out accommodation and private transport cost changes - slowed to 2 per cent in October, compared to 2.3 per cent in September.
As for other goods in the Singapore consumers' basket, costs of 'recreation and others' jumped 2.4 per cent in October due to more expensive holiday travel and higher salaries for foreign maids, the DOS said in its report.
And in line with global food and commodity price trends, food items cost 1.7 per cent more in October than they did a year ago. Prepared meals, vegetables, rice and cereals, fresh seafood as well as dairy products and eggs were all dearer.
DBS economist Irvin Seah thinks domestic inflationary pressures are mounting 'from the still booming property market', tighter labour market and foreign worker levy hikes.
And though 'imported inflation remains subdued for now', rising asset, commodity and food prices, capacity constraints and capital inflows could 'stoke regional inflationary risks', he said.
October CPI up 3.5% on higher car, home prices
Inflation slightly lower than September's 3.7% increase
By TEH SHI NING
SINGAPORE'S inflation eased a little in October, though economists still expect it to exceed 4 per cent by the end of this year.
October's consumer price index (CPI) rose 3.5 per cent from a year earlier due to higher housing, transport, food and recreation costs, slowing from September's inflation rate of 3.7 per cent.
The index was also 0.5 per cent higher in October compared to September, the Department of Statistics (DOS) said yesterday.
Driving the consumer price inflation in October were steeper car and petrol prices, which sent transport costs 9.5 per cent higher year on year.
Higher accommodation costs and electricity tariffs led to a 3.5 per cent year-on-year rise in housing costs, the other key contributor to inflation in October.
HSBC economist Leif Eskesen observed that 'private housing prices and rents remain high and are still growing at a healthy pace despite the macro-prudential tightening measures implemented a few months ago'.
He thinks this will spill over to prices in the HDB market and add to broader demands for compensating wage hikes.
Excluding accommodation costs, the CPI rose 3.5 per cent in October from a year ago.
JPMorgan economist Matt Hildebrandt worked out that core inflation - which strips out accommodation and private transport cost changes - slowed to 2 per cent in October, compared to 2.3 per cent in September.
As for other goods in the Singapore consumers' basket, costs of 'recreation and others' jumped 2.4 per cent in October due to more expensive holiday travel and higher salaries for foreign maids, the DOS said in its report.
And in line with global food and commodity price trends, food items cost 1.7 per cent more in October than they did a year ago. Prepared meals, vegetables, rice and cereals, fresh seafood as well as dairy products and eggs were all dearer.
DBS economist Irvin Seah thinks domestic inflationary pressures are mounting 'from the still booming property market', tighter labour market and foreign worker levy hikes.
And though 'imported inflation remains subdued for now', rising asset, commodity and food prices, capacity constraints and capital inflows could 'stoke regional inflationary risks', he said.
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