Singapore Inflation Slows From 14-Month High

Singapore's consumer price inflation slowed more-than-expected in June from a 14-month high, data showed Wednesday.

Inflation eased to 1.8 percent in June from a 14-month high of 2.7 percent seen in May, the Ministry of Trade and Industry and Monetary Authority of Singapore reported. Economists had forecast it to fall moderately to 2.4 percent in June.

Inflation has slowed in June after accelerating for three straight months, helped by slower growth in car prices and accommodation cost.

Costs of private road transport went up 2.8 percent annually in June, after an 8.1 percent sharp rise seen in the previous month. Meanwhile, food inflation edged up to 3.2 percent in June from 3.0 percent in May.

Service inflation also eased in June, down to 2.2 from 2.5 percent in May. Accommodation cost advanced only 0.5 percent versus 0.9 percent rise in May.

On a monthly basis, consumer prices fell 0.7 percent in June, reversing a 0.5 percent increase in the prior month.

Core consumer prices, excluding the cost of accommodation and private road transport, rose 2.1 percent annually in June, slightly slower than May's 2.2 percent increase.

Overall inflation is expected to ease in the second half of the year due to lower imputed rentals on owner-occupied accommodation and car prices, the ministry said. Inflation is forecast to come in at the lower half of the 1.5-2.5 percent forecast range.

At the same time, MAS core inflation is projected to stay elevated at 2-3 percent in 2014.

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