SINGAPORE (May 23): Singapore’s consumer price index (CPI) for all items in April contracted for the 18th straight month by 0.5% compared to a year ago, though the contraction was smaller compared to the 1.0% fall in March.

The fall in headline inflation was largely due to the low base associated with the disbursement of Service & Conservancy Charges (S&CC) rebates in April last year, said the Monetary Authority of Singapore and the Ministry of Trade and Industry in a joint release.

MAS Core Inflation, which excludes the costs of accommodation and private road transport, edged up to 0.8% in April from 0.6% a month ago, mainly due to higher services inflation as well as a smaller decline in electricity tariffs.

Accommodation cost decreased by a more moderate 0.9%, compared to the 3.2% drop in the previous month. While actual and imputed rentals fell at a faster pace, the cost of housing maintenance & repairs rose on a year-ago basis.

“S&CC rebates, which affect the housing maintenance & repair cost component, were disbursed in April, July and October last year, and will be disbursed in May, July, and October this year. As a result, base effects will raise CPI-All Items inflation in April but lower it in May,” the agencies explained.

Private road transport cost fell by 7.1%, faster than the 5.9% decline a month earlier. This was mainly due to a larger decline in car prices amid weaker Certificate of Entitlement (COE) premiums, as well as a bigger drop in petrol pump prices.

Services inflation rose to 0.7% from 0.4% a month earlier, mainly on account of a stronger pickup in the cost of holiday travel and domestic services which included salaries and government levies for foreign domestic workers. In addition, the disinflationary effects from the waiver of national examination fees since April last year dissipated on a year-ago basis.

The cost of electricity, liquefied petroleum gas & gas fell by a more moderate 13.9% compared to the 14.9% decline in March. This was due to a smaller reduction in electricity tariffs, reflecting the low base in April last year.

Food inflation edged up to 2.3% from 2.2% in the previous month, driven by a larger increase in the prices of non-cooked food items, including fish & seafood and fruits.