Singapore, Singapore (4E) – Singapore’s inflation rate climbed for the third consecutive month in July, primarily because of higher road transport costs, according to the country’s central bank and Ministry of Trade and Industry report released Friday.
Singapore’s headline consumer price index (CPI) slightly rose 1.9 percent in July from the same period in 2012 and 1.8 percent from June. The headline inflation rate is in-line with forecasts of economists.
A key contributor for the July rise is higher car prices and private road transport costs, which climbed 2 percent after a 2.1 percent decline in June.
In a separate statement, the Monetary Authority of Singapore (MAS) said that the rise in transport price was driven by increasing Certificate of Entitlement (COE) premiums and the new surcharge on cars implemented under the Carbon Emission-based vehicle scheme (CEVS).
Fuel pump prices also increased due to upward trending global oil prices, the city-state’s central bank said. Accommodation cost, however, accelerated at a slower rate of 2.6 percent in July, compared with 4.8 percent gain in the previous month.
Food inflation in July was 2.1 percent, and services inflation fell to 2.5 percent from 2.7 percent in June .