Singapore: Water tariffs prod inflation higher in July
August 23, 2017
In July, consumer prices fell 0.2% from the previous month, representing a slightly steeper decline than June’s 0.1% fall. According to Statistics Singapore, the result was particularly driven by lower prices for housing, which dropped 2.3%.
Inflation crept up from June’s 0.5% to reach 0.6% in July, undershooting market expectations of 0.8%. The acceleration itself was driven by an increase in the price of fuel and utilities, which were affected by the government’s newly-introduced water tariff increases in July. Meanwhile, annual average inflation ticked up from June’s 0.3% to 0.4% in July, reaching an over two-year high.
The Monetary Authority of Singapore’s (MAS) core inflation measure, which excludes the cost of accommodation and private road transport, came in at 1.6% in July, marginally up from June’s 1.5% reading but equaling May’s.
Author: Edward Gardner, Economist