SINGAPORE’S core inflation slowed more than expected in July, while headline inflation maintained the same pace as in the previous month, data from the Department of Statistics showed on Friday (Aug 23).
Official inflation forecasts remain unchanged, after the Monetary Authority of Singapore lowered its headline inflation forecast range at the latest monetary policy meeting.
July’s headline inflation was 2.4 per cent, the same rate as in June and just a nudge lower than the median forecast of 2.5 per cent by private-sector economists polled by Bloomberg.
Private transport costs increased, but was offset by lower accommodation inflation, said the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI).
Core inflation, which excludes accommodation and private transport, was 2.5 per cent. This was lower than the 2.9 per cent recorded in June, as well as below economists’ median estimate of 2.9 per cent.
On a month-on-month basis, the overall consumer price index (CPI) fell 0.3 per cent in July, while core CPI dropped 0.1 per cent.
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In July, MAS had lowered its full-year forecast for headline inflation to a range of 2 to 3 per cent, but maintained its core inflation forecast range at 2.5 to 3.5 per cent.
In July, most broad CPI categories experienced lower inflation.
Services inflation was 2.9 per cent, from 3.4 per cent the previous month, on the back of a slower pace of increase in holiday expenses.
Accommodation costs were lower at 3.1 per cent, compared to 3.3 per cent in June, as housing rents rose at a more modest pace.
Food inflation was 2.7 per cent, down slightly from 2.8 per cent the previous month, due to smaller increases in the prices of both non-cooked food and food services.
Retail and other goods inflation eased to 0.3 per cent, from 0.5 per cent previously, as the prices of clothing, non-durable households goods and personal effects fell.
Electricity and gas prices inflation was 6.6 per cent, down from 6.9 per cent, on account of a smaller increase in electricity prices.
Only private transport costs picked up to 0.9 per cent, from a 0.7 per cent fall the previous month, due to smaller declines in the prices of cars and motorcycles, alongside a steeper increase in petrol prices.
