CPI-All Items inflation rose 0.6% in June from 0.4% in May.
This chart from JP Morgan shows that the rise in the consumer price index (CPI) was pushed by offsetting price movements. As private road transport prices slipped 0.5% MoM due to lower Certificate of Entitlement (COE) premiums, accommodation costs remained stable after lower rents offset an increase in government housing charges.
CPI-All Items inflation and MAS core inflation went up 0.6% and 1.7% respectively in June from 0.4% and 1.5% in May mainly from higher food and services inflation.
Also read: Singapore prices climbed 0.6% in June
“The June core inflation print continues to affirm the broader trend of a contained rise in core inflation to between 1.7% and 2.0%oya through H2 2018, in line with the JP Morgan forecast and consistent with our expectation for no further monetary tightening at the October policy review,” JP Morgan economist Benjamin Shatil said.
He added that a gradual tightening of labour market conditions and the easing in the real estate market following the moderate rise in core price pressures may likely occur.
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