Singapore's CPI falls 0.3 pct in June

Singapore's consumer price index in June fell 0.3 percent, according to the latest data released by Singapore's Ministry of Trade and Industry (MTI) and Monetary Authority of Singapore (MAS) on Thursday.

The consumer price index (CPI) came in at minus 0.3 percent in June on a year-on-year basis, compared with minus 0.4 percent in May, mainly on account of larger increases in the costs of services, food, and private road transport, said MTI and MAS in the joint media release.

MAS core inflation, which excludes the cost of accommodation and private road transport, went up to 0.2 percent, compared with 0.1 percent in May, given increased contributions from services and food costs.

Services inflation went up slightly to 0.5 percent in June as higher costs of hotel stays and telecommunication services more than offset a sharper decline in air fares and healthcare services fees.

Food inflation picked up to 2 percent, from 1.8 percent in the previous month, due to sharper price increases for hawker meals and restaurant food.

The cost of private road transport increased 1.2 percent, higher than the 1.0 percent rise in May, which was due to the decline in petrol pump prices moderated.

Accommodation cost fell 2.6 percent in June, following the 2.5 percent decrease in May, reflecting the soft housing rental market, said MTI and MAS.

MAS Core Inflation and CPI-All Items 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, said the news release.

The authorities also projected that for 2015 as a whole, MAS core inflation and CPI could come in at the lower half of the forecast range of 0.5 to 1.5 percent and minus 0.5 to 0.5 percent, respectively. Endi