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Singapore inflation rate edges up to 0.6% in July

Staff Writer |
Consumer prices in Singapore rose 0.6% from a year earlier in July of 2017, following a 0.5% rise in the prior month while market expected a 0.8% increase.

Cost of transport rose at a faster pace while food inflation was steady and cost of housing continued to fall.

Year-on-year, prices rose more than in a month earlier for: clothing & footwear (2.6% from 1.9%); household durables & services (1.0% from 0.3%, largely due to a 2.2% increase in household services & supplies), health care (2.9% from 2.5%, mainly driven by a 3.6% rise in medical & dental treatment and a 0.6% gain in medical products, appliances & equipment) and miscellaneous goods & services (0.5% from 0.2%, driven by a 0.7% rise in alcoholic drinks & tobacco, a 4.1% rise in personal effects and a 1.8% increase in other miscellaneous expenditure).

Also, cost of transport rose 2.0%, faster than a 1.8% rise in the prior month, mainly due to a 3.5% rise in private road transport).

Meantime, cost increased less for education (2.8% from 3.2%, due to a 2.9% rise in tuition & other fees and a 0.9% gain in school textbooks & related study guides), while surged for communication (0.3% from -0.6%).

On the other hand, cost fell for housing & utilities (-2.5% from -2.0%, mainly driven by a 4.1% decline in accommodation).

Prices of food rose 1.4%, the same as in the previous month. Among food excluding food servicing services, cost increased for bread & cereals (1.1%); meat (0.6%); milk, cheese & eggs (0.2%); fish & seafood (2.5%); oils & fats (3.1%), fruits (3.3%), vegetables (0.4%); sugar, preserves & confectionery (1.3%), non-alcoholic beverages (1.6%) and other food (2.9%).

Among food servicing services, prices increased for all categories: restaurant foods (1.2%), fast food (0.2%), hawker food including food courts (1.8%) and catered food (1.7%).

Core consumer prices which exclude costs of accommodation and private road transport, edged up 1.6% from 1.5% in June and in line with estimates.

On a month-on-month basis, consumer prices declined by 0.2%, after falling 0.1% in a month earlier.

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