Singapore CPI-All Items Inflation Falls -0.5 Pct Y-O-Y In April

SINGAPORE, May 25 (Bernama) -- The Singapore consumer price index (CPI)-All Items inflation eased to -0.5 per cent in April from -0.3 per cent in March, mainly on account of a sharper price decline in oil-related items and a moderation in services inflation. A joint statement released by the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) said, the cost of oil-related items fell by 11.7 per cent in April, following the 7.9 per cent decrease in the preceding month, as electricity tariffs were reduced further owing to lower global oil prices. It said services inflation eased to 1.1 per cent from 1.5 per cent a month earlier, largely led by a fall in holiday travel cost and waiver of national examination fees. Food inflation was stable at 2.1 per cent. While costs of prepared meals rose at a faster pace, this was offset by slower price increases in non-cooked food items. Accommodation cost was 2.5 per cent lower, extending the 2.2 per cent decline in the previous month, reflecting the soft housing rental market. Private road transport cost fell by a more modest 2.1 per cent in April, compared to the 4.0 per cent drop in March, largely due to the smaller correction in certificate of entitlement (COE) premiums on a year ago basis. Inflation as measured by CPI, less imputed rentals on owner-occupied accommodation (OOA), eased to 0 per cent in April, down from 0.3 per cent a month earlier, given the reduction in electricity tariffs and moderation in services inflation. MAS Core Inflation, which excludes the costs of accommodation and private road transport, came in at 0.4 per cent compared to 1.0 per cent in the previous month. This mainly reflected the lower electricity tariffs and services inflation. On outlook, the statement said, external sources of inflation should remain generally benign, given ample supply buffers in the major commodity markets. Notably, global oil prices are likely to be much lower for the whole of 2015 compared to the US$93 average recorded last year. Although underlying cost pressures stemming from the tight labour market remain, the pass-through to consumer prices is expected to be tempered in the near term by the moderate growth environment. At the same time, the suite of budgetary measures announced recently will help alleviate some of the price pressures faced by consumers. -- BERNAMA