Core inflation hits a 14-year high of 3.6%

The increase was due to stronger inflation across all expenditure divisions.

Core inflation rose to 3.6% in May, its highest level since 2008 on the back of faster price increases in all expenditure divisions.

Compared to the previous month, core inflation picked up by 0.4%. Core inflation is the rate of price increase excluding private transport and accommodation costs. 

In a joint statement, the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) said the uptick in the core inflation was on the back of strong inflation across all expected divisions.

Meanwhile, the core inflation also pushed up headline inflation to 5.6% from 5.4$ in April.

In the coming months, MAS said core inflation will pick up further, "before moderating towards the end of the year as some of the external inflationary pressures recede."

For the year as a whole, MAS core inflation is projected to average 2.5–3.5%.

READ MORE: Inflation to increase ‘by a bigger magnitude’ in coming months: analysts