CONSUMER prices in Singapore rose in July, after declining in June for the first time in two years, because of higher costs for housing, food and education, the government said Tuesday.

The Department of Statistics' consumer price index increased 0.1 percent from July 2004 after falling 0.2 percent in June. Consumer prices rose 1.1 percent in July from June because of higher housing costs.

Chua Hak Bin, an economist at DBS Group in Singapore, said the central bank there was unlikely to ease monetary policy by allowing the currency to weaken because of concern that inflation would pick up by the end of the year.

The central bank since April 2004 has maintained a policy of allowing the Singapore dollar to appreciate to help keep inflation in check, as a stronger currency reduces the cost of oil and other imported goods.

"They have been quite hawkish and this is now almost their default policy," Chua said, adding that this year "they expect inflationary pressures to pick up."

Transportion fares and education fees were raised this month and electricity tariffs will increase in the third quarter, Chua said.

Khor Hoe Ee, assistant managing director of monetary policy, on Aug. 10 repeated the central bank's forecast that inflation this year was likely to be between zero and 1 percent. He warned that there were "still inflationary pressures in the pipeline" as a result of higher oil prices and a rise in the number of new jobs created this year.

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