Singapore: Inflation accelerates in July
August 23, 2011
In July, consumer prices rose 1.5% over the previous month. The reading contrasted the 0.2% drop recorded in June and represented the fastest price increase since January. The monthly price increase mainly reflected higher prices for housing (+3.2% month-on-month) as well as for transport (+2.7% mom). Annual inflation rose from 5.2% in June to 5.4% July, as the 1.5% price increase was above the 1.3% rise tallied in July last year. The reading contrasted market expectations, which saw inflation dropping to 5.0%. Annual average inflation, which is the reference for monetary policy decisions, continued to rise, stepping up from 4.3% in June to 4.5% in July. The Monetary Authority of Singapore recently raised its average inflation forecast for this year to between 4.0% and 5.0%, up from the previous estimate of 3.0% - 4.0%.