Department of Statistics (DOS) said the consumer price index of Singapore increased 1.1 percent in July, but dropped 0.5 percent 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 percent on lower prices of petrol. Residential costs reduced 1.3 percent on lower electricity tariffs. Other items and recreation fell 0.9 percent due to lesser holiday travel costs.
For seasonally adjusted basis, the consumer price index increased 0.3 percent from June, after June’s 0.2 percent increase from May. For the period of January to July, the consumer price index was 0.6 percent 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 percent in July, while transport and communication costs increased 1.1 percent.
The DOS said the consumer price index for general households increased 0.8 percent in the year’s first half, compared to 2008. This is comparable with a 7.1 percent year-on-year increase in H1 2008 and a 6 percent 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 percent income bracket was 1.6 percent, as compared to 0.9 percent for those on the top 20 percent and 0.7 percent for households in the middle 60 percent.
This is due to the least 20 percent income group with 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 percent and top 20 percent income groups – accounted for further reasonable inflation charges for the groups.