Singapore July inflation eases to 1.2% on back of lower private transport costs

Accommodation and food costs also fell.

The Monetary Authority of Singapore and the Ministry of Trade and Industry today revealed that the country’s consumer price index eased to 1.2% in July, compared to 1.8% in June.

The decline was driven mainly by lower private transport costs, which fell by 1.6% in July following the 2.8% surge a month earlier.

This mainly reflects the high base last year when COE premiums surged, while petrol pump prices also rose at a slower pace of 3.1%, compared to 6.4% a month ago.

Accommodation cost was largely unchanged, after edging up by 0.5% in the previous month, given the soft housing rental market.

Food inflation eased to 3.0% from 3.2% a month ago, on account of a more moderate rise in the prices of non-cooked food items and prepared meals.

Services inflation was higher at 2.5%, compared to 2.2% in the preceding month, led by stronger increases in pre-school fees, medical treatment cost and holiday travel expenses.