(Singapore Aug 24, 2023) Singapore’s core inflation has fallen into to 3.8% on a year-on-year basis in July, from 4.2% in June, mainly due to a smaller increase in food prices and a fall in electricity & gas costs.

It is the lowest level in more than a year. The last time core inflation was lower than 3.8% was in May 2022, when it was 3.6 %.

CPI-All Items inflation eased to 4.1% y-o-y in July, from 4.5% in June. This reflected lower private transport inflation, in addition to the decline in core inflation.

On a month-on-month (m-o-m) basis, core CPI rose by 0.2% in July, largely due to an increase in the costs of services and food.

Workers on a paddle boat clean a pond at the Gardens by the Bay in Singapore on March 2, 2020. (Photo by Roslan RAHMAN / AFP)

Meanwhile, CPI-All Items decreased by 0.2% over the same period on account of lower accommodation1 and private transport costs.

“This reflected lower private transport inflation, in addition to the decline in core inflation,” said MTI and MAS.

Food inflation eased to 5.3% in July as the pace of increase in the prices of prepared meals and non-cooked food moderated.

Electricity and gas costs fell due to lower tariffs compared to a year ago. The regulated electricity tariff for households, inclusive of Goods and Services Tax (GST), fell at a steeper pace of 7.2% in the third quarter of the year, compared to the 0.9% decline in the preceding quarter.

Gas tariffs for households, inclusive of GST, dropped 4.2% in the third quarter, compared to the 1% increase in the preceding quarter.

Services inflation was generally unchanged at 3.6% as a smaller increase in the cost of outpatient services and a decline in air fares were offset by a larger increase in holiday expenses.