Costly private transport jacks up inflation in May: MAS

Consumer price index hits 14-month high.

CPI-All Items inflation picked up to 2.7% in May, on the back of an 8.1% climb in private road transport costs.

According to data released today by the Monetary Authority of Singapore and the Ministry of Trade and Industry, May’s inflation is higher than April’s 2.5%, while private transport costs are also greater than the 5.7% rise in the preceding month

“CPI-All Items inflation is expected to ease for the rest of 2014 with the dissipation of the base effect arising from the sharp correction in COE premiums in Q2 2013. For the whole year, car prices are likely to add negligibly to inflation. Given the large supply of newly-completed housing units, imputed rentals on OOA should stabilise this year. CPI-All Items inflation is projected to come in at 1.5–2.5% in 2014,” noted the report.

Here’s more from MAS:

Food prices increased by 0.2% due to more costly hawker meals as well as non-cooked food items, including rice & other cereals and fresh fish.

Overall services cost was stable as the rise in medical treatment, recreation & entertainment and household services fees was offset by cheaper holiday travel.

Prices of retail items, such as clothing & footwear and personal effects, declined with the
commencement of the Great Singapore Sale. 

Accommodation cost rose by 3.0% compared to April when Service & Conservancy Charges (S&CC) rebates were disbursed to households living in HDB flats. Imputed rentals on OOA fell slightly given the weaker housing rental market.