Singapore's core inflation in July dropped to 2.5 per cent year-on-year, driven by lower inflation across all broad core consumer price index (CPI) categories.

July's figure is also a dip from June's 2.9 per cent, said the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) on Friday (Aug 23).On a month-on-month basis, core inflation – which excludes accommodation and private transport – fell by 0.1 per cent.

Overall or headline (CPI-All Items) inflation in July remained unchanged at 2.4 per cent year-on-year, as a slowdown in accommodation and core inflation was offset by a pickup in private transport costs.

On a month-on-month basis, headline inflation fell by 0.3 per cent.

Services inflation moderated largely to 2.9 per cent year-on-year in July, from 3.4 per cent year-on-year in June, on the back of a slower pace of increase in holiday expenses.

Accommodation inflation was slightly lower at 3.1 per cent year-on-year in July, from 3.3 per cent in June, as housing rents rose at a more modest pace.

Food inflation edged down to 2.7 per cent year-on-year in July, from 2.8 per cent in June, due to smaller increases in the prices of both non-cooked food and food services.Retail and other goods inflation eased to 0.3 per cent year-on-year in July, from 0.5 per cent in June, as the prices of clothing, non-durable household goods and personal effects fell.

Electricity and gas inflation moderated to 6.6 per cent year-on-year in July, from 6.9 per cent in June, on account of a smaller increase in electricity prices.

Private transport costs picked up to 0.9 per cent year-on-year in July, reversing from -0.7 per cent year-on-year in June, due to smaller declines in the prices of cars and motorcycles alongside a steeper increase in petrol prices.