Inflation picks up in May at 5.6%

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

The rate of price increase sped up to 5.6% in May. Last month inflation was at 5.4%.

The further acceleration of the headline or consumer price index (CPI)-all items inflation was on the back of higher accommodation (4.0% from 3.9%), private transport (18.5 from 18.3%) inflation, and a rise in core inflation (3.6% from 3.3%), according to the Ministry of Trade and Industry (MTI) and Monetary Authority of Singapore (MAS).

MAS and MTI said accommodation edged up on the back of a larger increase in housing rents, whilst private transport rose amidst higher petrol costs.

Meanwhile, inflation for other expenditure divisions namely food, services, and retail and other goods also picked up in May to 4.5%, 2.6%, and 1.8%, respectively.

Looking ahead, MAS said prices of commodities such as food will remain high due to supply-demand mismatches and disruption in global transportation and regional supply chain.

Crude oil will likewise remain elevated amidst higher geopolitical risks and tight supply conditions.

For the whole year, headline inflation is forecast to come in between 4.5–5.5%.

READ MORE: Consumers expect inflation to continue for another full year