SINGAPORE: Singapore’s inflation fell by 0.7 per cent from a year ago in June, compared to the 1.6 per cent drop in May when the government rebates to households cut housing maintenance-related costs.
“This was mainly due to a smaller 3.5 per cent decline in accommodation costs, compared to the 6.0 per cent decrease in May when S&CC rebates to households lowered the cost of housing maintenance & repairs. Meanwhile, actual and imputed rental costs continued to fall amid the soft housing market,” a joint release from the Monetary Authority of Singapore and the Ministry of Trade and Industry said on Monday.
Service & Conservancy Charges (S&CC) rebates, which affect housing maintenance and repair cost, were disbursed in April, July and October last year, and will be disbursed in May, July and October this year. As a result, base effects raised consumer price index-all items inflation on a year-ago basis in April 2016 but lowered it in May 2016. Inflation as measured by CPI less imputed rentals on owner-occupied accommodation (OOA) was zero per cent in June, up from a negative 1.0 per cent a month earlier.
