Singapore’s key inflation gauge rose at the same annual rate in June from last month, ahead of a closely watched monetary policy review.
The core inflation rate, which excludes housing and private transportation costs, stood at 0.6% in June from a year earlier, according to a statement by the Department of Statistics Singapore on Wednesday. That’s the same as the 0.6% in May and is weaker than the 0.7% median estimate in a Bloomberg News survey.
The overall inflation rate came in at 0.8% last month from a year ago, lower than the 0.9% survey median estimate. Recreation prices fell 2.6% in June compared to a year ago, after also falling 2% in May. The food inflation rate was 1% in June, while healthcare costs rose 2.8%.
The figures will feed into the Monetary Authority of Singapore’s (MAS) policy review due on July 30. Official estimates project the city-state’s core inflation to average between 0.5%-1.5% this year.
Some economists including those at Bank of America, Goldman Sachs and Barclays are predicting an easing of monetary policy this month as they expect price pressures to remain low and stable in the period ahead. Economists at Citigroup, however, see a 60% chance the MAS holds its policy settings.
Wednesday’s data follow quarterly gross domestic product figures from last week that showed Singapore’s economy avoided a technical recession, led by manufacturing and services exports as businesses seek to front-run higher US tariffs.
Source: theedgemalaysia