Singapore inflation crept up to 1.2% in March

Drop in private transport cost slowed.

According to a release, CPI-All items inflation picked up to 1.2% in March from 0.4% in February, mainly on account of a smaller fall in car prices. Contributions from all other major categories, except accommodation, were also slightly higher.

The cost of private road transport fell by 2.8% in March, compared with the 7.1% correction in the
preceding month. The smaller decline reflects the dissipation of high base effects of car prices a year
ago.

Accommodation cost rose by 1.7% in March, after increasing by 2.0% in February, as imputed rentals on
owner-occupied accommodation (OOA) inched up at a slower pace. Services inflation edged up to 2.4%, from 2.1% in February, led by the stronger increase in the cost of household services and holiday travel.
Food inflation was 2.9% in March, higher than the 2.3% in February, mainly as a result of the dissipation
of the base effects associated with Chinese New Year.

The price increase for non-cooked food was steeper at 2.9% in March compared with 1.4% in the preceding month. 

Prices of oil-related items fell modestly by 0.3% in March, following the 1.8% decline in February, as the lower electricity and gas tariffs were partially offset by the rise in petrol pump prices