Singapore: Inflation remains steady in June
Latest reading: Inflation remained at May’s 0.8% in June, marking the joint-lowest result since February 2021 and falling short of market expectations. Looking at the details of the release, Food and housing prices grew at a softer pace, offsetting stronger price pressure for transport.
The trend pointed down mildly, with annual average inflation coming in at 1.3% in June (May: 1.5%). Meanwhile, core inflation was steady, coming in at May’s 0.6% in June.
Finally, consumer prices dropped 0.08% over the previous month in June, swinging from the 0.69% increase recorded in May.
Panelist insight: Commenting on the outlook, Nomura’s Euben Paracuelles and Charnon Boonnuch, stated :
“We think the inflation outlook remains benign, given muted underlying price pressures and still-broad sources of disinflation […], consistent with near-neutral labour market conditions.”