Producer prices rebound in February

Annual declines persist despite a monthly rise.

Manufactured products and domestic supply prices rebounded in February, although both remained lower than a year earlier.

The Singapore Manufactured Products Price Index rose 3.0% from January, reversing a 0.3% fall in the previous month, as oil prices gained 3.7% and non-oil prices increased 2.9%.

On an annual basis, the manufactured products index fell 2.0%, extending January’s 4.9% decline. Oil prices dropped 11.5% from a year earlier, whilst the non-oil index slipped 0.4%.

The Domestic Supply Price Index rose 3.1% from January after a 0.1% decline a month earlier, with the oil index up 5.1% and the non-oil index up 2.5%. Machinery and transport equipment was the main driver of the monthly increase in both indices.

Annual domestic supply prices still fell 2.9% in February, following a 6.1% decline in January. The fall was led by an 11.0% drop in oil prices, whilst the non-oil index edged down 0.1%.

Chemicals and chemical products remained a key drag on both measures, falling 8.8% from a year earlier, mainly because of lower organic chemical prices.