Singapore's consumer prices fall 0.4% in July

The consumer price index inflation in Singapore in July contracts again by 0.4 percent year on year, following the 0.3 percent drop in June, authorities said on Monday.

The Ministry of Trade and Industry and the Monetary Authority of Singapore said that the retreat was mainly due to a lower cost of private road transport, which fell by 0.1 percent after rising 1.2 percent in June.

The cost of accommodation declined by 2.8 percent, following the 2.6 percent drop in the previous month, reflecting the continued softening of the housing rental market, MTI said.

Inflation in food prices was 1.9 percent, owing to smaller price increases for non-cooked food items and hawker food.

Services inflation came in slightly higher at 0.6 percent in July, due to a rise in educational course fees and holiday travel costs.

The core inflation, which excludes changes in the price of private road transport and accommodation, came in at 0.4 percent from 0.2 percent in June.

Looking ahead, the Monetary Authority said the core inflation and CPI-All Items inflation could rise towards the end of the year and are expected to pick up further in 2016, as the effects of the budgetary measures and the drag from the past fall in global oil prices dissipate on a year-ago basis.

The MAS therefore expects inflation to come in at -0.5 to 0.5 percent this year, while core inflation is expected to stay elevated at 0.5 percent to 1.5 percent.