Singapore inflation eases to 1.8% in June

By Kelly Tay

 

CONSUMER price inflation in Singapore eased more than expected to 1.8 per cent in June from 2.7 per cent in May, mainly on account of a more moderate increase in car prices

CONSUMER price inflation in Singapore eased more than expected to 1.8 per cent in June from 2.7 per cent in May, mainly on account of a more moderate increase in car prices.

The median forecast of 20 economists polled by Bloomberg before the Department of Statistics released the data on Wednesday was for a 2.4 per cent year-on-year rise in the consumer price index (CPI).

The government has also narrowed its inflation forecast for 2014. 

The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) said in a joint statement that headline inflation is "expected come in at the lower half" of the 1.5-2.5 per cent forecast range.

Said MAS and MTI: "(Headline) inflation is expected to ease in the second half of 2014 due to lower imputed rentals on owner-occupied accommodation and car prices. For the whole year, car prices are now projected to exert a slight drag on overall inflation, given the larger-than-expected increase in car COE (certificate of entitlement) quotas."