Singapore transport costs rebounded by 1.7%

Following two preceding months of decline.

According to Maybank Kim Eng, transport costs rebounded by +1.7% YoY (June 2013: -1.6% YoY) from the declines in the preceding two months.

Here's more from Maybank Kim Eng:

Private road transport was up +2.0% YoY (June 2013: -2.1% YoY) as the COE premiums for cars above 1,600cc rose to SGD77,100 in the July 2013 from SGD61,700 registered in May 2013 and petrol pump prices rose by +8.9% YoY (June 2013: +4.8% YoY) amid the rise in crude oil price (e.g WTI crude oil prices jumped +19.3% YoY to USD105/bbl in July 2013).

While transport cost have rebounded, we do not expect immediate acceleration in Aug 2013 as COE premiums fell -17.9% YoY this month given the high base of SGD94,502 in Aug, while the rise in fuel prices likely to moderate as crude oil price so far this month have stabilized somewhat after the surge in July 2013 (i.e. Aug 2013 to-date average of USD106.6/bbl).