Housing, transportation weighs on Singapore’s consumer prices, posts 21st month of decline

Singapore’s consumer price index-induced inflation fell again in July, posting the 21st straight month of decline, weighed upon by declines in housing and transportation costs.

Singapore’s consumer price index fell 0.7 percent year-on-year in July after falling 0.7 percent in June. The median forecast in a Reuters survey was for a decline of 0.5 percent in July. However, prices elsewhere in the economy continued to edge upwards.

Private road transport costs, which include cars, slid 4.4 per cent year-on-year. The cost of fuel and utilities also fell 8.9 per cent compared with the same month a year ago.

Food prices rose 2.1 percent in July compared with the same month a year ago, while the cost of household durables and services also increased 3.2 percent. Core inflation, which strips out accommodation and private road transport costs to better gauge everyday expenses, ticked up 1 percent.

Meanwhile, the Monetary Authority of Singapore expects core inflation to pick up gradually over the course of the year, partly because oil prices are expected to be slightly higher in this half of the year compared with the first half.