Singapore: Inflation moderates, while core inflation sinks to an-over-three-year low in July
August 23, 2019
Consumer prices decreased 0.4% over the previous month in July, following June’s 0.2% fall. According to data released by Statistics Singapore, the fall was primarily caused by lower prices for housing and utilities, and clothing and footwear, which was only slightly offset by higher healthcare and communication costs.
Inflation ticked down to 0.4% in July from June’s 0.6% and fell short of analysts’ expectations of 0.6%. Meanwhile, annual average inflation was stable at 0.6% in July.
The Monetary Authority of Singapore’s (MAS) core inflation measure, which omits accommodation and private road transport costs, fell to 0.8% in July from 1.2% in June, missing analysts’ expectations.
Going forward, lower global oil prices relative to 2018 and weak domestic growth will continue to constrain inflation. However, increasing labor costs and possible monetary easing from the MAS in October will likely provide some upward price pressure.
Author: Steven Burke, Economist