S&CC rebates offset higher water costs

This led to a minimal impact on inflation.

The 15% spike in water prices starting July minimally affected inflation and consumer price index, as mentioned by Maybank analysts.

According to the brokerage firm, water tariffs account for a small 0.54% weight in the CPI basket.

"There may however be second round effects in August and September," the brokerage firm said.

Whilst water prices rose, cost of electricity and gas moderated to +7.9% in July (vs. +19.1% in Jun) as global oil prices softened in the previous quarter.

"S&CC rebates to HDB residents in July had a bigger impact on headline CPI, pulling down accommodation costs by -4.1% (vs. -3.9% in Jun). Housing & Utilities prices declined -2.5% in July (vs. -2% in Jun)," Maybank KimEng said.