CPI sneaks up 1.1% in July on residential costs

According to the Department of Statistics (DOS), the consumer price index of Singapore increased 1.1% in July, but went down 0.5% every year.

The annual turndown was attributed to lower communications and transport, recreation and housing, and other related items.

The cost of communication and transportation dipped 3% on lower prices of petrol. Residential costs reduced 1.3% on lower electricity tariffs. Other items and recreation fell 0.9% due to lesser holiday travel costs.

For seasonally adjusted basis, the consumer price index increased 0.3% from June, after June's 0.2% increase from May. For the period of January to July, the consumer price index was 0.6% higher than last year.

The monthly rise in July was mostly due to elevated costs on residential and communications and transport. Residential costs rose 3.4% in July, while transport and communication costs increased 1.1%.

The DOS said the consumer price index for general households increased 0.8% in the year’s first half, compared to 2008. This is comparable with a 7.1% year-on-year increase in H1 2008 and a 6% rise in H2 2008.

The improvement in consumer price index for the entire income groups in H1 2009 was a result of towering food and housing costs, however these price step ups were partially an offset by decreased car and petrol prices and lesser electricity tariffs.

For H1 2009, the households’ inflation rate in the lower 20% income bracket was 1.6%, as compared to 0.9% for those in the top 20% and 0.7% for households in the middle 60%.

This is because the least 20% income group has higher weights of accommodation and food in its consumer price index basket. Cars and petrol prices – which have elevated weights in the consumer price index baskets for the middle 60% and top 20% income groups – accounted for further reasonable inflation charges for the groups.