Singapore inflation up 0.6%

It reflected higher oil-related item prices and higher services inflation.

Consumer prices in Singapore is on a steady increase leading to January, as CPI-All Items inflation and MAS Core Inflation rose to 0.6% and 1.5% respectively, from 0.2% and 1.2% in the previous month.

According to the Monetary Authority of Singapore and Ministry of Trade and Industry, the pick up in prices was due to an increase in the cost of oil-related items, a smaller decline in car prices, and higher services inflation.

The cost of oil-related items rose by 5.9%, following the 0.1% decline in December, reflecting an increase in electricity tariffs as well as a stronger pickup in petrol prices.

Meanwhile, private road transport cost increased by 4.1%, faster than the 1.7% rise in the previous month, mainly due to a smaller decline in car prices and a faster pace of increase in petrol prices.

It is the same picture with the services inflation, which rose to 1.9% in January from 1.6% a month earlier. This was largely attributable to higher air fares and telecommunication services fees following price declines in December, which more than offset the impact of lower bus and train fares.2

On the opposite, food inflation eased to 1.9% from 2.0% in December, owing to more modest increases in the prices of non-cooked food items. Meanwhile, the cost of prepared meals rose at a similar pace as in the previous month.

Accommodation cost also fell by 3.9%, extending the 3.8% decline in the preceding month, reflecting the continued softness in the housing rental market.