Driven by higher electricity, gas and food prices.
Official statistics released on Tuesday, August 23 revealed that Singapore's core inflation increased to 4.8% in July, driven mostly by greater increases in the costs of food, electricity, and gas.
This is higher than the figure of 4.4% in June and above Reuters' prediction of a 4.7% growth.
In November 2008, when core inflation was 5.5%, was the last time Singapore recorded greater year-over-year rise.
Core inflation excludes housing and transportation costs.
In July, the headline consumer price index, or total inflation, increased to 7% year-over-year, exceeding the 6.7% reported in June.
The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) noted in a joint press statement, "In in addition to higher core inflation, both private transport and accommodation inflation rose in July."
Inflation rose in July, mostly owing to increases in the prices of food, energy, and gas, as well as housing.
In July, food inflation increased to 6.1% due to sharper rises in the prices of both food services and uncooked food.
The power and gas inflation rate increased to 24% in July, up from 20% in June, due to a bigger rise in electricity and gas rates.
In July, the rate of increase in housing rentals accelerated, contributing to a rise in accommodation inflation to 4.6%.
In July, the inflation rate for services increased to 3.5%, as the expenses of outpatient services, flights, as well as recreational and cultural activities increased at a greater rate.
Inflation for private transportation increased to 22,2% from 21,9% in June due to an acceleration in automobile costs.
In July, prices for retail and other items increased at a slower rate, coming in at 2.8%, while prices for telecommunications equipment, pharmaceuticals, and health products decreased. Concurrently, the price of personal effects decreased.
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