S'pore's overall inflation reaches 3.2% in Oct. 2021, hitting 8-year peak

The increase reflected stronger private transport and accommodation inflation.

Andrew Koay | November 23, 2021, 04:51 PM

Follow us on Telegram for the latest updates: https://t.me/mothershipsg

Overall, inflation in Singapore rose to 3.2 per cent in October 2022 according to consumer price index (CPI) data released by the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI).

The Business Times reported that it was the first time since March 2013 that headline inflation — the total inflation in an economy — crossed the 3 per cent mark.

This is also the highest since March 2013, according to Straits Times.

The 3.2 per cent, up from 2.5 per cent in September 2022 reflected stronger private transport and accommodation inflation, as well as higher core inflation, said MAS and MTI.

MAS measures core inflation by excluding the components of accommodation and private transport as they tend to be significantly influenced by supply-side administrative policies and are volatile.

Here are other details from October's CPI data released on Nov. 23:

  • Core inflation rose to 1.5 per cent year-on-year in October, compared to 1.2 per cent in September
  • Private transport inflation rose on the back of a stronger increase in car prices to 14.3 per cent year-on-year in October; it was 10.8 per cent in September
  • Accommodation inflation increased due to increases in housing rents; 2.5 per cent year-on-year in October, up from 1.9 per cent in September
  • Services inflation rose from 1.2 per cent year-on-year in September to 1.6 per cent in October, mainly due to inflation for airfares and holidays expenses
  • The cost of retail and other goods declined at a slower pace due to a smaller fall in the prices of clothing and footwear, and telecommunication equipment.

    • It was previously at -1 per cent year-on-year in September, before recording -0.4 per cent in October

  • Food inflation increased slightly to 1.7 per cent year-on-year in October, up from 1.6 per cent in September, largely on the back of non-cooked food prices rising.
  • Electricity and Gas inflation slowed from 9.9 per cent year-on-year in September to 7.8 per cent in October due to smaller increases in tariffs

Global inflation to continue rising

In summarising the inflation trends, authorities wrote that the currently elevated levels of global inflation were likely to persist for some time.

Domestically, MAS and MTI expect the labour market to continue recovering as Covid-19 restrictions ease and economic activity picks up.

The stabilisation of our local Covid-19 situation should also see consumer demand strengthen.

Follow and listen to our podcast here

Top image by @jacktthunter via Unsplash