Core Inflation in Singapore Slows for the Second Month: July Report

In Singapore, core inflation has slowed for the second consecutive month, indicating signs of economic stabilization in the country. In July 2024, the core inflation rate, excluding housing and transportation costs, stood at 4.1% compared to the same month last year. This decline is attributed to a decrease in service and food prices, suggesting that the government's measures to control inflation are beginning to yield results.

In June, core inflation also decreased to 4.2%, raising some hopes for further improvement in the economic situation. Analysts generally view this data positively and anticipate that inflationary pressure will gradually ease, despite still high costs for housing and utilities.

However, reports mention that although core inflation is slowing, the overall inflationary pressure remains high. Specifically, the overall consumer price index in Singapore rose by 5.2% year-on-year in July. This is driven by rising housing and transportation costs, indicating the presence of contradictions in various sectors of the economy.

Economists emphasize that a sustainable decrease in inflation will require further declines in global commodity prices as well as a strengthening of domestic demand. Maintaining a balance between economic growth and inflation control will be a key task for the government and the Central Bank of Singapore in the coming months.

Thus, the current state of inflation in Singapore serves as an important indicator of the country's economic health and its resilience in the changing global market.

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