Inflation rose by 5% year-on-year in February 2011

The CPI fell marginally by 0.1% over January 2011 as a result of lower cost of transportation.

According to Singapore Department of Statistics, excluding accomodation costs, the consumer price index declined by 0.3% m-o-m.

The 2.3 per cent decline in transport cost was mainly attributed to lower car prices. In contrast, housing cost rose by 0.5 per cent owing to higher accommodation costs. On account of dearer prepared meals, vegetables as well as meat & poultry, food prices rose by 0.4 per cent. Higher salary for foreign maids and holiday travel cost pushed up the costs of “recreation & others” by 0.6 per cent. Excluding accommodation costs, the consumer price index was 0.3 per cent lower in February 2011 compared with January 2011.

On a seasonally adjusted basis, the consumer price index remained unchanged in February 2011 compared with January 2011. Excluding accommodation costs, the consumer price index fell by 0.2 per cent in February 2011.

CPI rose compared with a year ago due to higher costs of transport, housing and food. Excluding accommodation costs, the consumer price index was 4.5% higher.

The cost of transport advanced by 15.2 per cent as a result of higher prices of cars and petrol. Housing cost increased by 5.8 per cent, arising from higher accommodation costs and electricity tariffs. With dearer prepared meals, vegetables, meat & poultry, seafood, milk products & eggs, rice & other cereals as well as fruits, food prices rose by 2.6 per cent. Excluding accommodation costs, the consumer price index went up by 4.5 per cent in February 2011 compared with a year ago.

The consumer price index in January-February 2011 was 5.2 per cent higher compared with the same period of previous year. Excluding accommodation costs, the consumer price index increased by 4.9 per cent during the same period.

The core inflation measure tracked by the MAS rose to 0.3% on a month-on-month basis. On a year-on-year basis, the MAS core inflation measure moderated to 1.8% in February 2011, from 2.0% in January 2011.