Singapore's consumer price index (CPI) rose by 5.3 percent in June, rebounding from the inflation rate of 5.0 percent of the previous month, the Department of Statistics said on Monday.

The higher increase was mainly due to higher accommodation cost.

The June housing costs rose by 9.7 percent on year, up from the previous month's inflation of 8.2 percent. Its sub-index named accommodation cost inflation also saw a rise of 10.8 percent from 9.0 percent in May, the Monetary Authority of Singapore (MAS) said in a joint press release with the Ministry of Trade and Industry.

The cost of transport, however, rose 8.7 percent on year, easing from last month's 9.2 percent. "Car prices rose strongly from a year ago. However, with petrol pump prices falling by 0.8 percent, private road transport cost increased at a slower pace of 9.7 percent y-o-y in June from 10.3 percent in May," the MAS said.

Food prices also rose by 2.3 percent, moderating from 2.5 percent expansion in May, while the prices of clothing and footwear rose by 1.2 percent.

The Core Inflation measured by the MAS remained 2.7 percent in June for the third consecutive month, "as the lower contribution from prices of food, services and oil-related items was offset by stronger y-o-y increases in prices of retail products such as clothing and footwear."

The MAS said the headline inflation is still expected to be lower on average in the second half compared to the first half, but will remain above its historical average.

"Accommodation cost inflation, while moderating, has been stronger than expected, as leasing contracts continue to be renewed at rentals that are considerably higher, especially in the HDB (Housing and Development Board) segment," while "COE ( Certificate of Entitlement) premiums have risen sharply recently and will remain at elevated levels, given the further reduction in COE supply from August," the central bank added.

The MAS expected the Core Inflation to ease further in the second half, as pass-through of wages and other business costs to consumer prices could be more moderate than the first half. Meanwhile, "the earlier weakness in global commodity prices will dampen pressures on domestic prices of oil and food items in the near term."

The central bank expected that the city-state's CPI inflation of the whole year is likely to come in at the upper half of the 3. 5-4.5 percent forecast range, while the MAS Core Inflation is expected to be in the range of 2.5-3.0 percent.