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Singapore inflation edges up to -0.3 per cent in June

Thursday, July 23, 2015 - 13:12
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Singapore's inflation rate remained in negative territory in June, although it inched up to -0.3 per cent from -0.4 per cent in May.

SINGAPORE'S inflation rate remained in negative territory in June, although it inched up to -0.3 per cent from -0.4 per cent in May.

This was due to larger increases in the costs of services, food and private road transport, said the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) in a joint release.

Services inflation rose slightly to 0.5 per cent in June as the higher costs of hotel stays and telecommunication services outstripped the decline in air fares and healthcare services fees.

Meanwhile, food inflation increased to 2 per cent from 1.8 per cent in May, on the back of bigger price increases for hawker meals and restaurant food.

Private road transport cost was up by 1.2 per cent versus the one per cent rise in May, as the slide in petrol pump prices moderated.

Core inflation - which strips out accommodation and private transport costs - clocked 0.2 per cent, compared to 0.1 per cent in the previous month, due to increased contributions from services and food costs.

"Core Inflation and (headline) inflation could subsequently rise towards the end of the year and in 2016, on account of higher global oil prices and as the effects of the budgetary measures dissipate," MAS and MTI said.

For the year as a whole, inflation is projected to come in at -0.5-0.5 per cent, while core inflation is expected to clock 0.5-1.5 per cent.

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