Singapore's core inflation eased to 2.5% in July 2024, down from 2.9% in June, though car and taxi costs climbed while food and housing softened.
KEY POINTS
IN SIMPLE TERMS
Prices in Singapore are not rising as fast as they were a few months ago. Some things, like using your own car or taking a taxi, got more expensive, but food and housing costs went down a little bit.
WHY IT MATTERS
WHERE DO YOU STAND?
Should the monetary authority be prepared to tighten policy if rapid wage growth threatens the inflation outlook, or should it focus on supporting employment first?
👍 👎 Vote ↓Singapore’s inflation rates showed changes in July 2024, with some costs going up and others going down.
In July 2024, Singapore saw changes in its inflation rates.
The Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) shared this news on 23 August 2024.
Core inflation went down to 2.5% from 2.9% in June.
This means prices of everyday items went up, but not as much as before.
CPI-All Items inflation stayed the same at 2.4%.
| Inflation Type | July 2024 Rate | Change from June |
|---|---|---|
| Core Inflation | 2.5% | Decreased |
| CPI-All Items | 2.4% | No change |
Private transport costs went up from -0.7% in June to 0.9% in July.
This means using your own car or taking a taxi got more expensive.
Housing costs went down a bit, with rents going up only a little.
Food prices also went down slightly.
This was because non-cooked food and eating out became a bit cheaper.
MAS thinks core inflation will keep going down slowly until the end of 2024.
They predict it will be between 2.5% and 3.5% on average for 2024.
According to the report, “All in, MAS Core Inflation is expected to stay on a gradual moderating trend over the rest of the quarter and step down further in Q4 2024.”
These factors help keep prices from going up too fast in Singapore.
The report states, “Risks to the inflation outlook remain.”
MAS warns that some things could make prices go up more than expected.
If more people get jobs and wages go up quickly, it could lead to higher prices.
Things like world problems or bad weather could also affect prices in Singapore.
If you’re buying a car, it might cost more now than a few months ago.
But food and housing might not be much more expensive than before.
MAS will keep watching prices to make sure they don’t go up too fast.
They might change some rules if needed to keep prices stable.
MAS and MTI will keep checking inflation rates to help keep prices steady for everyone in Singapore.
Should the monetary authority be prepared to tighten policy if rapid wage growth threatens the inflation outlook, or should it focus on supporting employment first?
Be the first to weigh in.
