Inflation eases to 6.5% in December

It came in lower due to the moderation in private transport inflation.

The rate of price increase slowed to 6.5% in December 2022, data from the Ministry of Trade and Industry (MTI) and Monetary Authority of Singapore (MAS) showed. In November 2022, inflation was at 6.7%.

The moderation of the headline or consumer price index (CPI)-all items inflation was on the back of slower private transport inflation (15.5% from 17.2%).

MAS and MTI said private transport prices moderated "as car and petrol prices rose at a more gradual pace."

Price movements also slowed down for retail and other goods (2.8% from 3.3%), accommodation (4.7% from 4.8%), electricity and gas (16.5% from 16.7%). 

Services and food inflation, on the other hand, edged up in December to 3.7% from 3.6% and to 7.5% from 7.3%, respectively.

The higher inflation for food and services offset the smaller price increases for trail and other goods as well as electricity and gas, resulting in the MAS core inflation being unchanged from November at 5.1%.

For the whole of 2022, MAS and MTI expect headline inflation and core inflation to average around 6.1% and 4.1%, respectively.