Singapore's consumer price index (CPI) in July rose 1.2 percent year on year, compared with the inflation rate of 1.8 percent in June, respectively, the Department of Statistics said on Monday.
The CPI inflation hit a 14-month high of 2.7 percent in May.
Private road transport cost fell by 1.6 percent year on year in July, following the 2.8 percent increase in June, mainly due to the high base last year.
Food prices rose by 3 percent, while prices of services rose by 2.5 percent, driven by stronger increases in pre-school fees, medical treatments and holiday travel.
The core inflation, which excludes changes in the price of private road transport and accommodation as these are influenced more by government policies, rose 2.2 percent year-on-year in July, inching up from June's gain of 2.1 percent.
The Monetary Authority of Singapore said inflation is expected to continue easing for the rest of the year with car prices projected to exert a slight drag. The headline inflation is expected to come in at 1.5 to 2 percent this year, while core inflation is expected to stay elevated at 2 to 3 percent, the central bank said.
The authority said that domestic cost pressures, particularly stemming from a tight labor market, are likely to remain the primary source of inflation, given that inflation in most of Singapore's key import source markets is expected to be modest.