Singapore: Inflation ebbs in July
Inflation softened to 4.1% in July (June: 4.5%). July’s figure marked the lowest inflation rate since January 2022. Moderating price pressures for food, transport, and housing and utilities drove the slowdown.
Additionally, the trend pointed down, with annual average inflation easing to 6.0% in July (June: 6.3%). Core inflation also fell, coming in at 3.8% in July from June’s 4.2%.
Finally, July saw consumer prices fall 0.24% over the previous month, dropping from the 0.48% increase recorded in June.
Analysts at the EIU commented on the inflationary outlook:
“Sticky prices for food, accommodation and private transport will remain the main drivers of elevated inflation in 2023. However, the easing in commodity prices and government policies to increase the supply of flats and Certificates of Entitlement (the document required to purchase a vehicle) will lead to headline inflation moderating discernibly for the remainder of 2023 and into 2024.”