Sign up | Log in



Home  >>   Daily News  >>   Singapore News  >>Economy  >> Singapore’s inflation eases in June on slowing car prices
NEW UPDATES Asean Affairs 25 July 2014  

Singapore’s inflation eases in June on slowing car prices

Inflation in Singapore retreated in June as car prices rose at a slower pace, the Department of Statistics said on Wednesday (July 23).

The consumer price index (CPI) rose 1.8 per cent in June from a year ago, slowing from May's 2.7 per cent which was a 14-month high.

The rise in last month's CPI was well below analysts' forecast of a rise of about 2.4 per cent as the pace of price increases fell in most categories.

Private road transport cost edged up by 2.8 per cent in June, a smaller rise compared to the 8.1 per cent surge a month earlier, largely due to the sharp correction in Certificate of Entitlement (COE) premiums in May.

Analysts say expectations of more COE quotas for the rest of year would continue to dampen car prices and put downward pressure on headline inflation.

"The major factors are probably moderation in the car prices which jumped the month before with a slight increase in the COE quota… so that is really having a dampening effect on the inflation,” said Assistant Professor of Finance (Education) Aurobindo Ghosh from Singapore Management University’s Lee Kong Chian School of Business.

“On the other side, the main part which is sort of going up, but not by much, is the food prices. Food prices seem to have gone up, maybe because of the tight labour market and due to pass-through costs."

Food prices rose by 3.2 per cent in June, compared to 3 per cent in May. Other major CPI components such as accommodation, services also increased, but at a slower pace than in the previous month.

Core inflation – which excludes changes in the price of private road transport and accommodation since these are influenced more by government policies – rose 2.1 per cent year-on-year in June, slower than May's 2.2-per cent gain.

"Core inflation higher than headline inflation shown in the June numbers itself also reflects that the story of our outlook for inflation in Singapore remains intact and that domestic cost pressures are likely to factor in and play a larger factor in the 2014 price outlook for Singapore. And going forward, for the second half of the year, we are likely to see this going to continue to be played out," said Alvin Liew, senior economist at United Overseas Bank.

Looking ahead, the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) said car prices are now projected to exert a slight drag on overall inflation, given the larger-than-expected increase in car COE quotas.

Consequently, CPI-All Items inflation is expected to come in at the lower half of the 1.5 to 2.5 per cent forecast range.

As for core inflation, MAS and MTI said it will likely stay elevated at 2-3 per cent in 2014.

Domestic cost pressures, particularly stemming from a tight labour market, are likely to remain the primary source of inflation as inflation in most of Singapore's key import source countries is expected to be modest.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                            July 25, 2014 Subsribe Now !
• Thailand explains domestic political situation at ASEAN-EU meeting Subcribe: Asean Affairs Global Magazine
• Palm oil producers’ net profits skyrocket on higherselling prices
• Singapore defense chief understands Thai political situation 
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Singapore’s inflation eases in June on slowing car prices
• WB pledges loans to Viet Nam
Asean Analysis                    July 25, 2014

• Asean Analysis July 25, 2014
China’s Oil Rig Removal and the ASEAN Regional Forum
Advertise Your Brand

Asean Stock Watch    July 24, 2014
• Asean Stock Watch-July 24, 2014
The Biweekly Update
• The Biweekly Update  July 25, 2014

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand