Chart of the Day: Deflation persisted across all segments in June

Clothing and footwear prices dropped by 3.2% YoY.

This chart from UOB shows that deflation persisted across other segments in June with clothing and footwear mainly affected and dropping by 3.2% YoY. Recreation and culture also fell 2.9% YoY, whilst miscellaneous goods and services slid 1.9% YoY.

Meanwhile, transport costs fell for its third straight month by 3.1% YoY. This is led by a decline in global oil prices even as Brent oil contracted 35.4% YoY in the same month.

Lower prices were also evident in personal effects with a drop of 6.9% YoY, marking its sixth straight month of decline. Jewellery and watches also had a 3.1% YoY contraction suggesting that lower retail demand and the absence of international tourism led spending are formidable headwinds against consumer prices.

On the flipside, prices of necessities, especially food and rental prices, rose in June. Food prices accelerated to 2.3% YoY, led primarily by food prices which rose 4.4% YoY.

Across food products, frozen meat prices continued to stay high at 14.5% YoY , followed by double-digit inflation of mutton, pork, and fish which grew 13.5%, 11.5%, and 5%, respectively.

Housing accommodation costs also rose for its sixth straight month by 0.5% YoY, in line with higher HDB resale prices in Q2 at 8% YoY.