Chart of the Day: What you need to know about inflation in June

The increase primarily reflected higher accommodation cost.

The Monetary Authority of Singapore and the Ministry of Trade and Industry reported:

CPI-All Items inflation rose to 5.3% in June from 5.0% in May 2012. The increase primarily reflected higher accommodation cost, which contributed 2.2% points to CPI-All items inflation, compared to 1.8% points in May.

The cost of minor repairs & maintenance rose more steeply, largely on account of base effects due to the timing of the disbursement of government rebates for HDB households. Imputed rentals on owner-occupied accommodation (OOA) continued to contribute a considerable 1.6% points to overall inflation.

Car prices rose strongly from a year ago. However, with petrol pump prices falling by 0.8%, private road transport cost increased at a slower pace of 9.7% y-o-y in June from 10.3% in May.

Together, accommodation and private road transport costs accounted for around two-thirds of CPI-All Items inflation in June.

Price increases of other major CPI categories slowed. Services inflation edged down from 2.9% in May to 2.8% in June, while food inflation moderated from 2.5% to 2.3% over the same period.

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