Smaller Fall In August CPI As Road Tax Rebate Expires

Economic Research	26 September 2016
Singapore
Economic Highlights
Smaller Fall In August CPI As Road Tax Rebate Expires Singapore’s consumer price index (CPI) fell 0.2% y-o-y in August, easing from a 0.6% drop the month before, after transportation costs declined at a significantly slower pace than the month before. Core CPI rose 1.0% y-o-y for the second consecutive month in August, inching lower from its +1.1% climb in June Inflation is expected to continue to pick up in the coming months, underpinned by a low base effect for oil prices and expiry of government rebates. However, any gains are likely to be constrained by weak economic growth. We maintain our forecast for CPI to decrease 0.6% in 2016, from -0.5% last year. Economist:  Ng Kee Chou | +603 92802179
To access our recent reports please click on the links below: 19 September  2016: Not A Clean Bill Of Health 01 September  2016: Singapore’s Business Loans Extend Decline In July 29 August  2016: July IPI Slumped On Broad-based Weakness 24 August  2016: Inflation Stays Negative In July 18 August  2016: July NODX Slump Deepened On Broad-based Weaknesses 12 August  2016: Singapore’s 2Q GDP Revised Lower As MTI Cuts 2016 Forecast