Cost of transport drove inflation to surge 5.5% year-on-year in January 2011

Higher costs of transport, housing and food also pushed inflation to rise 1.6% over December 2010.

According to the Department of Statistics Singapore, the consumer price index in January 2011 increased by 1.6 per cent compared with December 2010, reflecting higher costs of transport, housing and food. With higher prices of cars and petrol, the cost of transport went up by 5.8 per cent. Housing cost rose by 2.7 per cent due mainly to higher service & conservancy charges (S&CC) as rebates for S&CC were given in December 2010 but not in January 2011. Higher accommodation costs and electricity tariffs also contributed to the rise in housing cost. Food prices crept up by 0.9 per cent arising from dearer prepared meals, fresh seafood and vegetables. Excluding accommodation costs, the consumer price index was 1.3 per cent higher in January 2011 compared with December 2010.

On a seasonally adjusted basis, the consumer price index in January 2011 grew by 1.3 per cent compared with December 2010. Excluding accommodation costs, the consumer price index also increased by 1.3 per cent in January 2011.

Year-on-Year Changes

Compared with January 2010, the consumer price index grew by 5.5 per cent in January 2011, owing to higher costs of transport, housing and food. The cost of transport increased by 18.4 per cent on account of higher prices of cars and petrol. Housing cost rose by 5.3 per cent following higher accommodation costs and electricity tariffs. Reflecting dearer prepared meals, fresh seafood, vegetables, chilled meat & poultry, fruits, dairy products & eggs, as well as rice & other cereals, food prices went up by 2.8 per cent. Excluding accommodation costs, the consumer price index was 5.3 per cent higher in January 2011 compared with a year ago.

MAS’ Core Inflation Measure

MAS’ core inflation measure (which excludes accommodation and private road transport costs) was 0.0 per cent in January 2011 on a month-on-month basis. On a year-onyear basis, MAS’ core inflation measure eased to 2.0 per cent, from 2.1 per cent in December 2010.