Consumer price index dip to 0.5% in June

Blame the sharp drop in housing and repair prices.

The consumer price index (CPI) came in at 0.5% in June, lower than 1.4% in the preceding month.

According to the Monetary Authority of Singapore and the Ministry of Trade and Industry noted that the lower inflation rate largely reflected the steep fall in housing maintenance & repairs inflation on a year-ago basis, as the base effects associated with the disbursement of the service and conservancy charges (S&CC) rebates dissipated.

This contributed to a 3.9% fall in the cost of accommodation in June, larger than the 1.5% decline recorded in May.

Private road transport inflation slowed to 3.0% in June from 6.1% in the previous month, mainly on account of a decline in car prices and smaller petrol price increases.

Food inflation eased to 1.4% in June from 1.5% in May, as the rate of increase in the prices of non-cooked food items moderated. Meanwhile, the prices of prepared meals continued to rise at a stable pace.

Services inflation edged down to 1.3% in June from 1.4% in May, due to a decline in telecommunications services fees.