Inflation still at 3.1% in May as power, gas costs rise slower

Core inflation unchanged since March, headline inflation up from 2.7% in April.

Lower price increases in power, gas and retail helped keep the annual rate of MAS core inflation at 3.1% for the third month in a row. 

Latest data from the MAS and MTI showed core inflation remained unchanged since March, as the higher inflation in services was offset by lower inflation in electricity and gas, as well as in retail and other goods.

On a monthly basis, core inflation went up 0.1%.

Meanwhile, the headline inflation or the consumer price index (CPI) All Items inflation, rose to 3.1% YoY last month from 2.7% in April due to a faster increase in private transport costs. CPI-All Items inflation inched up 0.7% MoM.

Price growth in the services sector quickened last month to ballooning holiday expenses and a small decline in airfares. Food inflation remained broadly unchanged, while power and gas inflation slowed due to a smaller increase in power costs.

Retail and other goods saw prices increase at a slightly slower pace due to soft price increases in personal effects, alcoholic beverages and tobacco.

Driving the high private transport inflation are prices of cars, motorcycles and petrol increasing at a faster pace.