Singapore inflation edges up to 1.8% in June, MAS lowers inflation forecast

Inflation in Singapore edged up last month but stayed near three-year lows, lending weight to the central bank's decision to lower its full-year inflation forecast.-- FILE PHOTO: REUTERS  
Inflation in Singapore edged up last month but stayed near three-year lows, lending weight to the central bank's decision to lower its full-year inflation forecast.-- FILE PHOTO: REUTERS  

Inflation in Singapore edged up last month but stayed near three-year lows, lending weight to the central bank's decision to lower its full-year inflation forecast.

Overall consumer prices rose 1.8 per cent in June over a year ago, up from 1.6 per cent in May, the Statistics Department said on Tuesday.

The data was released a few hours after the Monetary Authority of Singapore said it had revised its inflation forecast for the year. It now expects overall inflation to come in at 2 to 3 per cent this year, down from an earlier projection of 3 to 4 per cent.

The rise in June inflation was mainly due to higher petrol pump prices, which increased on the back of the recent pick-up in global oil prices, said the MAS and Trade and Industry Ministry (MTI) in a statement.

They added that some services costs also rose more quickly last month. Services inflation reached 2.7 per cent in June compared with 2.5 per cent in May, mainly owing to costlier medical insurance and holiday travel.

Core inflation, which excludes the costs of private transport and accommodation, stayed at 1.7 per cent in June as the rise in services inflation was offset by a lower increase in retail-related items such as clothing and footwear, said the MAS and MTI.