Singapore inflation jumped to 4.9% in February

Blame it on soaring road transport cost.

According to a joint statement of the Ministry of Trade and Industry and the Monetary Authority of Singapore, all Items inflation rose to 4.9% in February from 3.6% in January 2013. 

This temporary pickup had been anticipated in the January Inflation Report and was largely attributed to the more significant increase in private road transport cost. Food and services inflation were also stronger during the month.

Private road transport cost climbed by 17.4% in February, up from 10.5% a month earlier. This was due to the spike in COE premiums in January, which was exacerbated by the low base a year ago when premiums declined.

The step-up in private road transport cost alone accounted for more than two thirds of the 1.3% points rise in overall inflation in February. 

Accommodation cost inflation eased to 5.9% in February from 6.1% in the preceding month, reflecting a slightly smaller increase in market rentals.

Nevertheless, imputed rentals on owner-occupied accommodation (OOA) continued to contribute a significant 1.1% points to overall inflation. Together, the costs of private road transport and accommodation accounted for more than three quarters of CPI-All Items inflation in February.

Food inflation was higher at 2.3% in February, compared with 1.0% in January, mainly on account of the seasonal uptick in food prices and a reversal of the base effects associated with the Chinese New Year.

Services fees rose by 2.7% in February, up from 1.9% in January, largely led by the increase in the cost of household services following the new regulation for foreign domestic workers.

Prices of oil-related items declined at a more moderate pace of -0.2% in February compared to -1.4% in January. While electricity tariff was lower, petrol pump prices increased in tandem with higher global oil prices at the beginning of this year.