Chart of the Day: Here's Singapore's 14-year inflation story that will shock everyone

2014's prices are actually at par with 2000's.

Singaporeans may be feeling the brunt of rocketing consumer prices, but little do they know that prices are actually almost at the same level during early 2000.

According to UOB, Singapore saw another month of higher consumer prices in May, as inflation rose further to reach 2.7% y/y, the highest since Mar 2013.

Here's more from UOB:

Nevertheless, consensus forecast of 2.6% y/y was quite in line with the actual inflation rate as the low base effect resulting from the car financing measures implemented last year was already priced in.

On a sequential basis, consumer prices rose 0.5% m/m. ƒƒ Due to the low base in car prices a year ago, private road transport costs rose 8.1% y/y in the month of May, higher than the 5.7% increase in the previous month.

Nevertheless, inflation in other major categories in the consumption basket moderated slightly compared to a month ago.

For example, services inflation registered a 2.5% y/y rate, lower than the 2.7% y/y rate in April, while food prices grew 3.0% y/y, slower than the 3.1% y/y rate a month ago.

As we had highlighted in the earlier March CPI inflation report (dated 23 April 2014), accommodation costs will not likely add much towards inflationary pressures this year given the large supply of newly-completed housing units and the existing housing cooling measures. Accommodation costs increase came in at a slower pace of 0.9%y/y in May (from 1.1% in April and 1.2% in March).

ƒ Core inflation (which excludes housing and private road transport) moderated slightly to register 2.2%, compared to 2.3% y/y a month ago (which was the highest since September 2012).