Slower Pace of Consumer Price Rise in Singapore

Singapore’s consumer prices increased at a more moderate rate in July, mainly due to lower private transport costs and a slowdown in core inflation. The Department of Statistics reported that the consumer price index rose by 4.1% compared to the same period last year. This figure aligns with the median estimate of a 4.1% increase from a survey conducted by the Wall Street Journal with 10 economists.

Moderation in Transportation Costs

Transportation costs, which hold an index weighting of 17.07%, rose by 3.7% in July. This represents a deceleration from the 4.6% increase observed in June. Housing and utilities costs, which make up 24.84% of the index, experienced a 3.9% rise in July compared to the previous year. This followed a slightly higher increase of 4.3% in June. Food prices, with a weighting of 21.10%, showed a 5.3% increase on a yearly basis in July, slightly lower than the 5.9% surge in June.

Core CPI Growth Slows Down

Core CPI, which excludes private road transport and accommodation costs, grew by 3.8% year-on-year in July. This demonstrates a slowdown compared to the 4.2% rise observed in June and aligns with the median estimate of a 3.75% increase from the Wall Street Journal survey.

Overall, Singapore’s consumer prices showed a tempered upward trend in July, driven by moderation across various sectors.