Transport costs speed up inflation

With transport costs rising by 11.5% in July, inflation accelerated to the fastest pace since January.

According to the Singapore Department of Statistics, transport cost rose primarily due to the sharp increase in Certificate of Entitlement (COE) premiums compared to a year ago.

Meanwhile a Bloomberg report said that the 5.4% increase in the consumer price index in July compared to the same period in 2010 was “higher than the median estimate of 13 economists surveyed by Bloomberg News for a 5 percent gain.” The report also noted the inflation accelerating to the fastest pace since the start of 2011.

Other components that drove Singapore’s inflation were housing and food costs. Housing costs went up by 9.5%, due mainly to higher accommodation cost. The Singapore Department of Statistics said the higher accommodation cost was largely contributed by higher imputed rentals of owner-occupied accommodation which has no impact on the cash expenditure of owner-occupied households.

Food prices meanwhile were 3% higher, reflecting dearer prepared meals, seafood, dairy products & eggs, meat & poultry as well as fruits.