Inflation for the services sector slowed by 0.3% at 3.6% in June, down from May’s 3.9% due to the slower pace of hikes in holiday expenses and airfares. Accommodation also saw a slowdown to 4.5% down from the previous month’s 4.7% reading as an increase in housing rents slowed down.
Singapore’s headline consumer price index (CPI) or inflation moderated to 4.5% in June on a y-o-y basis. The Monetary Authority of Singapore’s (MAS) core inflation, which excludes private transport and accommodation, eased to 4.2% on a y-o-y basis. The figures came almost in line with the forecast from the Bloomberg consensus of 4.4% for headline inflation and 4.2% for core.
The key contributors to the easing were due to lower private transport costs and a slower pace of inflation for food and services. Food prices moderated to a 5.9% y-o-y growth, down from May’s 6.8% as prices for non-cooked food and prepared meals rose at a slower pace. At the same time, steeper declines in petrol prices and a smaller increase in car prices also led to the lower inflation for private transport.
