Singapore's inflation cooled to a lower-than-expected 0.6% in July, as the city-state braced for slower growth later this year.

This was lower than the 0.7% expected by economists polled by Reuters, and was also below the 0.8% seen in June.

Core inflation — which strips out prices of private transport and accommodation — dipped to 0.5%, lower than the 0.6% forecast by the Reuters poll.

The Monetary Authority of Singapore said a fall in retail and other goods prices led to cooler inflation, as well as lower electricity and gas inflation.

Prices of electricity and gas fell 5.6% year over year, the largest decline in the CPI basket, while prices of private transport rose 2.1% from the same period a year ago due to higher car prices.

The central bank said that inflation should remain "m

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