Singapore: Inflation inches up in July
August 23, 2013
In July, consumer prices rose 0.3% over the previous month, which is higher than the 0.2% increase observed in June. According to Statistics Singapore, transport recorded the largest price increase.
Annual inflation inched up from 1.8% in June to 1.9% in July, which was lower than the 2.1% increase expected by the markets. Annual average inflation, however, fell to 3.3% in July (June: 3.4%), the lowest level observed since December 2010.
The Monetary Authority of Singapore's (MAS) annual core inflation measure, which excludes the costs of accommodation and private road transport, decreased to 1.6% in July (June: 1.7%).
The MAS expects average inflation to range between 2.0% and 3.0% in 2013. FocusEconomics Consensus Forecast panellists see inflation at the upper limit of MAS's forecast range. They expect inflation to average 2.8% in 2013, which is down 0.1 percentage points from last month's estimate. For 2014, the panel sees average inflation at 3.0%.
Author: Dirina Mançellari, Senior Economist