Singapore June CPI rises slower than expected, may pick up pace again as city state continues tight controls on car registrations, driving up Certificate of Entitlement costs, Standard Chartered economist Alvin Liew says in note, according to Dow Jones.

“Car prices in Singapore have been soaring so far in 2010 and this is largely due to government policy. With the recent July COE prices surging higher again, we would not be surprised if inflation re-accelerates again and much of the headline inflation should continue to be driven by transport costs in the coming months,” Liew says after data show Singapore June CPI +2.7% on-year vs +3.2% May and +3.5% forecast in Dow Jones poll.

Adds, MAS to keep present policy stance on SGD unchanged in October monetary policy statement.

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