Singapore inflation inched a tad higher to 2% in August

Smaller gain recorded in transport cost.

According to the MAS, CPI-All Items inflation edged up to 2.0% in August from 1.9% in July, on account of stronger increases in the costs of accommodation, services and food which was partly offset by the smaller gain in private road transport cost.

Accommodation cost rose by 4.2% in August compared to 2.6% in July, when there was a disbursement
of Service & Conservancy Charges (S&CC) rebates for HDB households.

Meanwhile, imputed rentals on owner-occupied accommodation (OOA) contributed 0.7% point to overall inflation, down slightly from 0.8% point in July, reflecting softer conditions in the housing rental market.

Private road transport cost edged up by 0.1% in August after increasing by 2.0% in the previous month. Car prices fell, reversing the rise in July, while petrol pump prices rose at a more moderate pace in line with the recent trend in global oil prices.

Services inflation picked up slightly to 2.7% in August from 2.5% a month earlier, led by a stronger rise in cable TV charges and tertiary education fees.

Food prices increased by 2.4% in August, up from 2.1% in July, mainly on account of costlier hawker and restaurant meals.