SINGAPORE: Inflation in Singapore retreated further in
July as Certificate of Entitlement (COE) premiums fell, the Department
of Statistics said on Monday (Aug 25).
The consumer price index (CPI) rose 1.2 per cent in July from a year ago, slowing from June’s 1.8 per cent and down from May's 2.7 per cent which was a 14-month high.
Private road transport cost fell 1.6 per cent in July, following the 2.8 per cent increase in June, mainly due to the high base last year when COE premiums surged.
Food prices rose by 3 per cent last month, compared with 3.2 per cent in June. Prices of services rose by 2.5 per cent in July, up from 2.2 per cent in the previous month, led by stronger increases in pre-school fees, medical treatments and holiday travel.
Core inflation – which excludes changes in the price of private road transport and accommodation since these are influenced more by government policies – rose 2.2 per cent year-on-year in July, inching up from June's 2.1-per cent gain.
INFLATION EXPECTED TO EASE FURTHER
Looking ahead, the Monetary Authority of Singapore (MAS) said inflation is expected to continue easing for the rest of the year with car prices projected to exert a slight drag.
Consequently, CPI-All Items inflation is expected to come in at 1.5 to 2 per cent this year, while core inflation is expected to stay elevated at 2 to 3 per cent, the MAS said.
Domestic cost pressures, particularly stemming from a tight labour market, are likely to remain the primary source of inflation as inflation in most of Singapore's key import source countries is expected to be modest, the ministry added.
The consumer price index (CPI) rose 1.2 per cent in July from a year ago, slowing from June’s 1.8 per cent and down from May's 2.7 per cent which was a 14-month high.
Private road transport cost fell 1.6 per cent in July, following the 2.8 per cent increase in June, mainly due to the high base last year when COE premiums surged.
Food prices rose by 3 per cent last month, compared with 3.2 per cent in June. Prices of services rose by 2.5 per cent in July, up from 2.2 per cent in the previous month, led by stronger increases in pre-school fees, medical treatments and holiday travel.
Core inflation – which excludes changes in the price of private road transport and accommodation since these are influenced more by government policies – rose 2.2 per cent year-on-year in July, inching up from June's 2.1-per cent gain.
INFLATION EXPECTED TO EASE FURTHER
Looking ahead, the Monetary Authority of Singapore (MAS) said inflation is expected to continue easing for the rest of the year with car prices projected to exert a slight drag.
Consequently, CPI-All Items inflation is expected to come in at 1.5 to 2 per cent this year, while core inflation is expected to stay elevated at 2 to 3 per cent, the MAS said.
Domestic cost pressures, particularly stemming from a tight labour market, are likely to remain the primary source of inflation as inflation in most of Singapore's key import source countries is expected to be modest, the ministry added.
- CNA/cy
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