Inflation speeds up for the sixth month in a row

Private transportation costs drive inflation past the 1.0% mark in March.

Inflation increased at a brisk 1.3% pace in March, the sixth month in a row for price increases in Singapore.

This was also the highest inflation rate recorded since the 1.6% three-year-high in May, 2017.

Private transport inflation saw the highest increase among all sectors by 7.2%, due to an increase in car prices and petrol costs. The Ministry of Trade and Industry and the Monetary Authority of Singapore noted that this is partially due to low base effects due to the global oil price plunge in March last year.

Services inflation likewise picked up by 1.2% due to an increase in point-to-point service fees, health insurance costs, and outpatient service fees.

Accomodation inflation remain unchaged at 0.5% as housing rents rose at a steady pace.

Food inflation dipped at 1.4%, compared to the 1.6% recorded in the previous month, as the prices of non-cooked food and prepared meals rose at a moderate pace.

Electricity and gas prices declined at a slightly lower rate of -9.7%, compared to the -9.8% recorded in February due to the dampening effects of the Open Electricity Market (OEM) on electricity prices as new take-up rates slowed down.

Inflation for retail & other goods slowed down to -1.5%, compared to the -19.% in the month previous, as the costs of clothing, footwear, and other personal effects declined, tampered by an increase in prices in household durables.

Core inflation, which is the basis for monetary policy, grew by 0.5% year-on-year in March, driven by higher services inflation, and lower declines in retail and electricity inflation.