Singapore Inflation Rate Edges Up to 0.6% in July


Consumer prices in Singapore rose 0.6 percent from a year earlier in July of 2017, following a 0.5 percent rise in the prior month while market expected a 0.8 percent increase. Cost of transport rose at a faster pace while food inflation was steady and cost of housing continued to fall.

Year-on-year, prices rose more than in a month earlier for: clothing & footwear (2.6 percent from 1.9 percent); household durables & services (1.0 percent from 0.3 percent, largely due to a 2.2 percent increase in household services & supplies), health care (2.9 percent from 2.5 percent, mainly driven by a 3.6 percent rise in medical & dental treatment and a 0.6 percent gain in medical products, appliances & equipment) and miscellaneous goods & services (0.5 percent from 0.2 percent, driven by a 0.7 percent rise in alcoholic drinks & tobacco, a 4.1 percent rise in personal effects and a 1.8 percent increase in other miscellaneous expenditure). Also, cost of transport rose 2.0 percent, faster than a 1.8 percent rise in the prior month, mainly due to a 3.5 percent rise in private road transport). 

Meantime, cost increased less for education (2.8 percent from 3.2 percent, due to a 2.9 percent rise in tuition & other fees and a 0.9 percent gain in school textbooks & related study guides), while surged for communication (0.3 percent from -0.6 percent). 

On the other hand, cost fell for housing & utilities  (-2.5 percent from -2.0 percent, mainly driven by a 4.1 percent decline in accommodation). 

Prices of food rose 1.4 percent, the same as in the previous month. Among food excluding food servicing services, cost increased for bread & cereals (1.1 percent); meat (0.6 percent); milk, cheese & eggs (0.2 percent); fish & seafood (2.5 percent); oils & fats (3.1 percent), fruits (3.3 percent), vegetables (0.4 percent); sugar, preserves & confectionery (1.3 percent), non-alcoholic beverages (1.6 percent) and other food (2.9 percent).  Among food servicing services, prices increased for all categories: restaurant foods (1.2 percent), fast food (0.2 percent), hawker food including food courts (1.8 percent) and catered food (1.7 percent).

Core consumer prices which exclude costs of accommodation and private road transport, edged up 1.6 percent from 1.5 percent  in June and in line with estimates.

On a month-on-month basis, consumer prices declined by 0.2 percent, after falling 0.1 percent in  a month earlier.

Singapore Inflation Rate Edges Up to 0.6% in July


Statistics Singapore l Rida Husna | rida@tradingeconomics.com
8/23/2017 6:14:24 AM