Inflation Stays Negative In July

Economic Research	24 August 2016
Singapore
Economic Highlights
Inflation Stays Negative In July Singapore’s consumer price index declined 0.7% y-o-y in July, matching its fall from a month ago. This was attributed to a sharper drop in the costs of housing & utilities of 4.3% y-o-y in July, compared with -4.2% in June, while the prices of clothing & footwear fell  by 1.8% y-o-y during the month, after rising briefly by 0.2% in the previous month. Also, price of restaurant food and household durables eased to +1.7% and +0.6% y-o-y, from +2.2% and +1.0% respectively the month before, highlighting dwindling consumer sentiment as the economy continues to slow. Elsewhere, the costs of healthcare moderated during the month. These were, however, offset by transportation costs, which fell at a slower pace of 3.5% y-o-y, compared to -4.3% in June, supported by rising crude oil prices. Similarly, the costs of communications and education picked up during the month. Economist:  Ng Kee Chou | +603 92802179
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