S'pore core inflation edges up more than expected to 0.4% in Sept

Increase in prices of retail and other goods a driving factor; inflation projected to rise

- Sue-Ann Tan

Singapore's consumer prices rose slightly more than expected in September, with economists expecting inflation to continue rising modestly.

Core inflation, which excludes private transport and accommodation costs to better represent household expenses, edged up to 0.4 per cent in September from the more than four-year low of 0.3 per cent in August.

This was higher than the 0.2 per cent forecast by analysts in a Bloomberg poll.

The rise in core inflation was driven by an increase in prices of retail and other goods, the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) said on Oct 23.

Overall inflation in September rose to 0.7 per cent from 0.5 per cent in August. This also topped the 0.6 per cent forecast in the Bloomberg poll.

Inflation is expected to rise in the coming months, analysts said.

OCBC Bank chief economist Selena Ling said: "Base effects did play a part. But prices also rose for transport, healthcare, food and education - mainly due to domestic price adjustments. Certificate of entitlement (COE) prices have rebounded in recent bidding exercises."