Singapore’s core inflation rises to 2% in July as electricity, services and food costs climb

In July, Singapore's core inflation rose to 2% due to increased costs in electricity, services, and food, according to the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI). Core inflation, which excludes private transport and accommodation, reached 2% in July, up from 1.6% in June. Overall inflation for the month stood at 2.2%, compared to 1.9% in June.

Electricity and gas prices, which had previously dropped by 2.9% in June, rose by 8.7% in July due to a significant increase in electricity prices. Private transport inflation slowed to 8% in July, down from 8.4% in June, as the pace of increase in petrol and diesel prices moderated. Food inflation climbed to 2.2% in July from 2% in June, primarily because of rising prices for food services and non-cooked food.

Retail and other goods inflation eased to 1.4% in July from 1.7% in June, thanks to lower inflation in furniture and personal care products. Accommodation inflation, however, was a key driver of the July inflation surge, rising to 0.8% in July from 0.6% in June due to higher housing rents and maintenance fees. Services inflation also increased to 1.7% in July from 1.5% in June, as airfares and point-to-point transport services prices grew at a faster rate.