Inflation picks up in March at 5.4%

It accelerated due to higher private transport, food, and services inflation.

The rate of price increase sped up to 5.4% in March. Last month inflation was at 4.3%.

The further acceleration of the headline or consumer price index (CPI)-all items inflation was on the back of higher private transport, food, and services inflation, according to the Ministry of Trade and Industry (MTI) and Monetary Authority of Singapore (MAS).

In particular, private transport inflation rose to 21.5% due to a larger increase in car and petrol prices.  

Electricity & gas prices rose at a faster pace at 17.8% on the back of a larger increase in the average electricity prices paid by households under the Open Electricity Market (OEM).

Meanwhile, food and services inflation jumped to 3.3% and 2.6%, respectively. 

Inflation also picked up in the accommodation (3.5%), and retail and other goods (0.4%) divisions.

Meanwhile, core inflation, which excludes accommodation and private transport, also picked up faster in March, standing at 2.9%.

In the coming months, MAS core inflation is likely to pick up further, "before moderating towards the end of the year as some of the external inflationary pressures recede," the MAS and MTI said in a joint statement.

For the entire year, MAS core inflation is estimated to hit an average of 2.5% to 3.5%, while CPI-All Items inflation is forecast to reach around 4.5% to 5.5%