Transport costs in Singapore dropped 1.3% in 2Q13

Versus last quarter's whopping 9.7%.

According to CIMB, on the back of the slight recovery in COE premiums and higher fuel costs, CPI rose 0.5% mom SA or +1.8% yoy last month, in line with consensus forecasts (CIMB: +1.4%).

On the other hand, 2Q13’s headline CPI eased to 1.6% yoy from 1Q13’s 4.0% owing to “cheaper” cars on lower COE premiums (caused by the MAS’s restrictions on motor loans since late Feb).

Here's more from CIMB:

Although private road transport CPI rose 1.1% mom last month, it fell 9.1% qoq. Yoy, transport costs fell 1.3% in 2Q13 vs. 1Q13’s +9.7%.

They fell 1.6% yoy in Jun (-2.8% in May 13) to subtract almost 0.3% pt from the 1.8% inflation last month.

Adding to Jun’s headline inflation were housing (+0.8% pt), food (+0.4% pt), healthcare (+0.3% pt) and other miscellaneous service costs (+0.5% pt)