Uptick in food prices keep inflation growth fresh

Inflation gained 1.5% after stalling for three months.

The higher food cost managed to impact the rebound of Singapore's consumer price index, which registered a 1.4% growth in May.

Food inflation gained 1.5% YoY in the said month, after stalling at 1.3% for the past three periods.

According to RHB, the uplift was driven by a larger increase in fresh food , which clocked in a 1.4% growth. On the other hand, prices of prepared meals rose at a similar pace at 1.5% for the fourth consecutive month.

In contrast, the cost of transportation eased to +3.8% YoY in May, from +4.7% the month before, undermined by a moderation in the increase of car and petrol prices. Similarly, the prices of household durables & services moderated, while healthcare and communications costs eased during the month.

Going forward, the CPI is expected to trend higher, supported by a recovery in external demand, and overall higher crude oil prices.