Inflation slipped to -0.4% in July on back of lower private transport costs

Housing prices also edged down.

Singapore's Consumer Price Index (CPI) sank to -0.4% in July, after a reading of -0.3% in June.

According to the Ministry of Trade and Industry, the slip was mainly due to a 0.1% decrease in private road transport costs. Private transport costs softened on back of lower Certificate of Entitlement (COE) premiums for cars.

Accommodation costs also declined by 2.8% following the 2.6% drop in June, reflecting the continued softening of the housing rental market.

Food inflation edged down to 1.9% from 2.0% a month earlier, owing to smaller price increases for non-cooked food items and hawker food.

Services inflation came in slightly higher, at 0.6% in July compared to 0.5% in June, due to a rise in educational course fees and holiday travel costs. 

Although headline figure dropped, the central bank's core inflation figure rose to 0.4% last month. This compares with 0.2% in June and reflects the more moderate decline in electricity tariffs and higher services inflation.