Inflation hit a new low of 1.65 per cent year-on-year in the month of August – the lowest since January 2010, according to the latest data from the Statistics and Census Service (DSEC). The city’s composite consumer price index (CPI) hit 108.10 for the month, attributable to a number of factors including parking space rental, the increased cost of eating out, and increases in property management fees and vehicles. For the same month last year the city saw a CPI of 106.34, mostly attributed to increased residential costs, and the increased cost of eating out. With regard to sector, that of Clothing and Footwear saw a 3.37 per cent reduction in its CPI compared to the same month last year, largely due to seasonal sales of clothing and footwear products. Housing and Fuels also saw a year-on-year reduction, of 0.43 per cent, attributable to receding prices in Liquefied Petroleum Gas (LPG) – with a 1.97 per cent year-on-year reduction – as well as lower rental prices for residences, which fell 2.06 per cent year-on-year. This is the first decline in the Housing and Fuels sector recorded since April 2010. Growth The Education sector saw the highest increase in pricing by sector, at an 8.89 per cent year-on-year increase. This was mostly due to increases in pricing for pre-primary and primary education, which saw a 23.71 per cent increase, as well as secondary education, which increased 27.54 per cent year-on-year. The Transport sector also saw a year-on-year increase, amounting to 7.32 per cent, in part due to higher charges for package tours and airfares during the Summer holidays – also linked to the increase in pricing, by 1.27 per cent year-on-year, seen in the Recreation and Culture sector. Within this sector, Cultural Services saw a 6.97 per cent year-on-year increase. Balancing act The Telecommunications sector, despite seeing a 0.43 per cent increase year-on-year for August, saw a 7.86 per cent decrease year-on-year in the Telecommunications equipment sub-sector, contrasted by a 1.29 per cent increase in Telecommunications services for the period. Food and non-alcoholic beverages were balanced between slightly higher prices for vegetables and fruits, as well as increased pricing for eating out, coupled with receding prices of fresh fish, seafood and pork – equating to a 2.09 per cent year-on-year increase in CPI. In addition, the sector’s Rice segment saw a 4.27 per cent year-on-year decrease in price for the month. Meanwhile, the Alcoholic Beverages and Tobacco sector saw a 5.32 per cent year-on-year increase, driven by a 7.89 per cent year-on-year increase in tobacco pricing, contrasted by a 0.81 per cent decrease in pricing on alcoholic beverages, year-on-year. With regard to eating out, the 2.28 per cent increase seen throughout the segment was concentrated in the Congee and Noodle subsector, which experienced a 3.89 per cent year-on-year increase in pricing, followed by Western food – at 2.65 per cent – and Coffee Shop refreshments – at 2.65 per cent, year-on-year.
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