Singapore core inflation dropped to 3.8% in July, lowest in more than a year

SINGAPORE: Consumer prices in Singapore rose more slowly for the third consecutive month in July. Core inflation, which excludes private transport and housing costs, dropped to 3.8 per cent year-on-year last month, the lowest level in more than a year.

In June, core inflation fell from 4.2 per cent to July’s 3.8 per cent because of a smaller increase in food prices and a fall in electricity and gas costs, said the Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore (MAS).

The last time core inflation had been lower than this was in May 2022, when it was 3.6 per cent.

Headline inflation, or the overall consumer price index, eased to 4.1 per cent in July from 4.5 per cent in June.

“This reflected lower private transport inflation, in addition to the decline in core inflation,” said MTI and MAS.

Both core and headline inflation figures matched analysts’ forecasts in a Reuters poll.

Food inflation dropped to 5.3 per cent in July as cooked and non-cooked food price rises moderated.

Electricity and gas costs fell 1.6 per cent due to lower tariffs compared to a year ago.

Retail and other goods inflation eased to 2.6 per cent owing to a smaller increase in clothing and footwear prices.