Private road transport cost was 2 percent higher in July compared to the 2.1 percent fall in the preceding month, as car prices picked up following the rise in COE premiums in June and the implementation of a new surcharge on some cars under the Carbon Emissions-based Vehicle Scheme.
Petrol pump prices also rose in line with the recent uptrend in global oil prices.
Accommodation cost increased at a slower pace of 2.6 percent in July from 4.8 percent in June as a result of the disbursement of Service & Conservancy Charges rebates for HDB households.
Imputed rentals on owner-occupied accommodation also rose at a more moderate pace, reflecting softer conditions in the housing rental market.
Services inflation eased to 2.5 percent in July compared with 2.7 percent a month earlier, led by smaller increases in the cost of healthcare and household services.
Food prices rose by 2.1 percent in July, slightly stronger than the 2.0 percent in June, mainly on account of costlier non-cooked food items.
MAS Core Inflation, which excludes the costs of accommodation and private road transport, slowed to 1.6 percent in July from 1.7 percent in June as the moderation in services inflation more than offset the higher contribution from food prices.
On a month-on-month basis, inflation rate increased 0.3 percent in July, following a 0.2 percent rise in June.