Singapore: Inflation plummets to lowest level in 20 months
August 23, 2012
In July, consumer prices added 0.2% over the previous month, which came in above the flat reading observed in June. Clothing and footwear as well as healthcare recorded the largest price increases, whereas prices for transport decreased over June. Building on the relatively modest monthly price increase, annual inflation plummeted from 5.3% in June to 4.0% in July, which represents its lowest level since November 2010 and was below market expectations that had inflation falling to 4.5%. Annual average inflation inched down to 5.2%. Meanwhile, the Monetary Authority of Singapore's (MAS) annual core inflation measure, which excludes the costs of accommodation and private road transport, moderated from 2.7% in June to 2.4% in July. The MAS recently raised its inflation forecast and now expects average inflation to range between 4.0% and 4.5% this year, up from the previous 3.5% to 4.5% range.