Transport costs up 4.2% in February

It was the key driver for overall inflation.

Singapore’s CPI grew 0.7% year-on-year in February, with the rise largely driven by higher transportation costs.

"Transportation costs remained the key driver for overall inflation, rising at a quicker clip of 4.2% yoy when compared to +2.8% in the month before. Private road transport jumped 7.1% yoy from +4.1% in January, pushed up by a low base effect and higher petrol costs," noted RHB.

In addition, certificate of entitlement prices increased 11.2% yoy in February from 2.1% in the month before.

Going forward, RHB expects the CPI to remain positive, supported by 1) a pick-up in economic activities in parallel with an expansion in export demand; 2) a low base effect following two years of decline; and 3) higher commodity prices.