SG CPI

SG CPI: Core inflation eased to +1.9% y/y (Aug 2014: +2.1% y/y), but remain stable around post 2007/08 global financial crisis average. The main decrease came from healtch care, where growth was reduced to +1.8% y/y (Aug’14: +3.4% y/y) on enhanced medical subsidies for lower to middle income earners, starting 1 Sep’14 . Food price was stable at +3.0 y/y in Sep’14 (Aug’14: +2.9 y/y) on higher cost for prepared meals. Transport costs fell -1.8% (Aug’14: -1.8% y/y) as its biggest component Private Road Transport contract rose +2.4% y/y (Aug’14: 2.4%). Meanwhile, prices of Clothing & Footwear fell 0.4% y/y largely due to seasonal sales. Meanwhile, headline inflation rate in Sep’14 eased for the third month in a row to +0.6 y/y ( Aug’14: +0.9 y/y) mainly on enhanced medical subsidies including the Pioneer Generation Package, and lower accommodation costs. Other components of CPI remained relatively stable.