July CPI At 6.5%

Mth-to-Mth: 1.2% (Last mth: -0.3%)
Yr-to-Yr: 6.5% (Last mth: 7.5%)
1st 07mth 2008: 7.0%

* SingStats-CPI *

Home Prices Correcting Soon?

The economy is slowing, and so is property sales, but private home prices are still holding partly due to low mortgage rates and developers' ability to hold off launches.

Experts are expecting a gradual correction over a year or more. Some investors will be forced to sell their units if their rentals cannot meet mortgage payments, as rentals drop when more units go on market. However, some investors are able to sell below developers' asking price and still make a profit. As for developers, they just have to sell enough units to keep revenue coming in.

S'pore's fundamentals still look good and stable, thus it is unlikely that prices would fall to 1997 or 2003 level.

* AsiaOne-Price , AsiaOne-SlowMkt *

2008 GDP Revised To 4-5%

In his National Day message, PM Lee has cut the 2008 GDP forecast to 4-5% from 4-6%. For the 1st 6mths, S'pore growth was at 4.5%.

* CNA-NDMsg *