Petrol pump prices increased after three consecutive months of price correction, although electricity tariffs remained 7.2 percent lower compared to a year earlier. Overall, the price of oil-related items fell by 1.0 percent in June, compared to a larger decline of 4.4 percent in May.
Services inflation was higher at 2.7 percent in June compared with 2.5 percent in May, mainly on account of costlier medical insurance and holiday travel.
Food inflation was stable at 2.0 percent. Although the cost of prepared meals rose at a slightly stronger pace, the price increase for non-cooked food was more modest.
Private road transport cost fell by a more moderate 2.1 percent in June, compared with the 3.7 percent decline in the previous month. This reflected the smaller drop in COE premiums in May on a y-o-y basis, as the market continued to adjust to the various motor vehicle-related policy measures introduced since February.
Accommodation cost inflation was 4.8 percent in June, down from 5.1 percent in May, as imputed rentals on owner occupied accommodation increased more gradually. Nevertheless, imputed rentals continued to contribute a significant 0.9 percent point to overall inflation in June.
CPI less imputed rentals on owner-occupied accommodation picked up to 1.1 percent in June from 0.8 percent a month earlier, mainly due to the rise in pump prices and higher services inflation.
MAS Core Inflation, which excludes the costs of accommodation and private road transport, stayed at 1.7 percent in June, as the pickup in services inflation was offset by lower contributions from prices of retail related items such as clothing and footwear.
On a month-on-month basis, inflation rate increased by 0.2 percent in June, following a 0.4 percent rise in May.
Overall food prices were 0.1 percent higher on account of slightly more expensive meals at hawker centres and restaurants. Car prices were higher, reflecting the increase in COE premiums in May. Petrol pump prices also rose in line with the recent uptrend in global oil prices. Leasing contracts for residential properties continued to be reset at higher rental values, which further pushed up actual rental cost and imputed rentals on owner-occupied accommodation. This resulted in a 0.2 percent rise in overall accommodation cost.