SINGAPORE’S headline and core inflation slowed more than expected in June, with headline inflation hitting a three-year low, data from the Department of Statistics showed on Tuesday (Jul 23).
The official full-year forecast range for headline inflation is being reviewed and will be updated in the Monetary Authority of Singapore’s (MAS) next monetary policy statement, due no later than Jul 31, said MAS and the Ministry of Trade and Industry (MTI) in a separate release.
June’s headline inflation was 2.4 per cent, down sharply from 3.1 per cent in May and lower than the median forecast of 2.7 per cent by private-sector economists polled by Bloomberg. This was the lowest rate since August 2021, when it was also 2.4 per cent.
The slowdown was largely due to a decline in private transport costs, in addition to lower core inflation.
Core inflation, which excludes accommodation and private transport, stood at 2.9 per cent. This was lower than May’s 3.1 per cent, and below economists’ median estimate of 3 per cent.
On a month-on-month basis, the overall consumer price index (CPI) was down 0.2 per cent in June, while the core CPI was unchanged.
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For now, MAS and MTI maintained their full-year inflation forecasts, with both headline and core inflation expected to average between 2.5 and 3.5 per cent. Excluding the transitory effects of the goods and services tax hike, both headline and core inflation are expected to be between 1.5 and 2.5 per cent.
In June, most broad CPI categories experienced lower inflation, while others stayed flat.
Private transport costs fell by 0.7 per cent as the prices of cars and motorcycles declined, with petrol prices also rising at a slower pace.
Accommodation inflation edged down to 3.3 per cent in June, from 3.4 per cent in May, as housing rents rose at a more modest pace.
For core inflation components, retail and other goods eased the most to 0.5 per cent, from 1.5 per cent previously.
Services inflation moderated to 3.4 per cent, from 3.6 per cent previously, on the back of a slower pace of increase in the cost of hospital services and holiday expenses.
Food costs remained unchanged at 2.8 per cent, which reflects “stable food services inflation”, MAS and MTI said.
Electricity and gas inflation similarly stayed flat at 6.9 per cent, as both electricity and gas prices rose at a steady pace.
