Singapore's transport costs dropped to a 4-month low 6.9%

Thanks to ''cheaper'' cars.

According to CIMB, headline inflation rose a gentler 3.5% in Mar 13 (4.9% in Feb), matching Oct 10’s reading. Mom SA, prices dipped 0.4% (+1.1% in Feb). The milder inflation was led by cheaper private transport and housing.

CIMB also said that “cheaper” cars on lower COE premiums (caused by the MAS’s tightening of restrictions for motor loans) pushed down private road transport CPI to 8.6% yoy in Mar 13 from an average 10.5% yoy in the previous six months.

Here's more from CIMB:

Overall transport costs were simultaneously brought down to a 4-month low of 6.9% yoy. Nonetheless, transport continued to contribute 1.3% pts or 37% to overall inflation.

And owing partly to base effects and more moderate increases in house rentals, accommodation cost inflation eased to 4.1% yoy in Mar, its slowest yoy increase in over two years.

Still, rentals contributed 1% pt to overall inflation last month. Core inflation − which excludes accommodation and private road transport – eased to 1.7% yoy from 1.9% yoy in Feb. After festive demand, food prices had eased to 1.8% yoy from Feb’s 2.3%, to compensate for higher healthcare costs (+3.9% yoy in Mar vs. Feb’s +3.3%).