Overview
- Core inflation, which excludes private transport and accommodation to better reflect everyday household expenses, rose to 2.0% in July from 1.6% in June according to MAS and MTI.
- Headline inflation increased to 2.2% as accommodation inflation also picked up, with higher housing rents and maintenance fees contributing to the rise.
- Electricity and gas prices reversed a June decline and jumped 8.7% in July, making the energy swing the single largest driver of the month-on-month inflation uptick.
- Private transport inflation eased slightly to around 8.0% as petrol and diesel price increases moderated, while food and services inflation climbed on faster rises in food services, airfares, and point-to-point transport fares.
- The change in July’s inflation mix could raise near-term living costs for households and will be watched by policymakers for its implications on support measures and monetary policy guidance.