ERA Daily Research - 24 August

Core inflation rises for 6th straight month

The Straits Times, 24 Aug 2021, Tue  

By Choo Yun Ting

Core inflation in Singapore continued its upward trend for the sixth month running in July, on the back of higher electricity and gas costs.

Core inflation, which excludes accommodation and private road transport costs, rose to 1 per cent on a year-on-year basis last month, up from 0.6 per cent in June. This was the highest increase since June 2019, in part due to low base effects and in line with figures forecast by economists in a Bloomberg poll.

Meanwhile, overall inflation edged up to 2.5 per cent, from 2.4 per cent in June. This was on account of the increase in core inflation, and higher private transport and accommodation costs, said the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI), which released the data yesterday.

The increase in overall inflation was due to a pickup in core inflation, as well as higher accommodation and food prices.

This outweighed the smaller decline in retail cost and that of other goods, the two agencies said.

Analysts said that while overall inflation came in at its highest since November 2013, inflationary pressures such as higher raw and intermediate goods prices are transitionary and expected to ease in coming months.

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Chip Eng Seng to sell three shophouses at Geylang Road for $8.63 mil

Edgeprop, 23 Aug 2021, Mon   

By Charlene Chin

Property and construction firm Chip Eng Seng has entered an agreement to sell three of its shophouses at 157, 159 and 161 Geylang Road for $8.63 million to an unrelated party.

Acquired by the firm in 1993, the property, which is the group’s remaining shophouse property in Singapore, comprises a partly two-storey, partly four-storey corner commercial shophouse, occupying a land area of approximately 2,990 sq ft.

It is currently tenanted and will be sold with tenancy.

“The group’s shophouse properties in Singapore do not contribute significantly to the group’s revenue and profitability as a whole. The group has therefore undertaken an exercise to dispose [of] its shophouse properties in Singapore,” Chip Eng Seng says in Singapore Exchange filing.

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