Singapore's inflation jumped a tad higher to 1.6%

Thanks to declining car prices.

According to a joint release by the Ministry of Trade and Industry and the Monetary Authority of Singapore, CPI-All Items inflation rose slightly to 1.6% in May from 1.5% in April. 

While car prices declined, it was more than offset by higher contributions from all other major categories. Services inflation picked up to 2.5% in May from 2.2% in April, on account of costlier medical treatment and medical insurance as well as a smaller fall in holiday travel cost.

Food prices were up by 2.0% in May, slightly stronger than the 1.8% rise in the preceding month, reflecting steeper price increases for both non-cooked food and prepared meals.

Prices of oil-related items fell by a more modest 4.4% in May compared with the 5.2% decline in April, led by a smaller reduction in petrol pump prices.

Accommodation costs climbed by 5.1% in May, up from 2.4% in April, as the impact of the disbursement of HDB Service & Conservancy Charges (S&CC) rebates in April dissipated. 

Imputed rentals on owner-occupied accommodation continued to increase, contributing 0.9% point to overall inflation in May. Private road transport cost fell by 3.7% in May, the first decline since 2009, reversing the 0.5% rise in April.

The fall was due to lower COE premiums in April and price adjustments by car dealers following the implementation of the motor vehicle-related policy measures.