Singapore CPI

Singapore CPI: Headline inflation eased to +1.2% y/y in Jul 14 from +1.8% y/y in Jun 14, mostly the result of correction in COE premiums. M/m, headline inflation was -0.3% (Jun: -0.7% m/m). Stripping accommodation and private road transport, prices were up 2.2% y/y in Jul (Jun +2.1% y/y), mainly attributed to inflation in services industry. Food increased +3.0% y/y, slower than +3.2% y/y in June. Slower inflation came from non-cooked items and prepared meals. Cost of private road transport was 1.6% lower in Jul14 than Jul13, while it was 2.1% higher y/y in Jun14. COE premiums were lower in July this year but it was partially offset by higher petrol pump prices, which rose 3.1% y/y in Jul14 (Jun: +6.4% y/y). It is widely expected for COE prices to fall further in the Aug-Oct bidding season as COE quotas rise in car categories. Mass market Category A will see a 13.0% surge from 1,011 to 1,143 COEs monthly and Category B will see a 4.55% rise from 966 to 1,010 COEs monthly.