Household electricity rates to shoot up 6.1%

Homeowners would have to pay 1.48 cents (S$0.0148) per kWh to 25.58 cents (S$0.2558) per kWh from 1 April to 30 June.

OCBC warned that the jump in rate would add to the inflationary pressure expected in Q2.

In a statement, the bank said it has yet to revise its expectations of an inflation overshoot in H1 despite the .5% drop in consumer goods prices in February.

Singapore’s consumer price inflation dropped to 5% from January’s 5.5%, due to lower car prices which offset higher food prices and maid salary. CPI ex-accommodation rose 4.5% yoy but fell 0.2% mom sa, suggesting some sequential stabilisation in prices.

MAS’ core inflation measure which strips out accommodation and private road transport also eased from 2.0% yoy in Jan to 1.8% in Feb (+0.3% mom).

“The rising crude oil prices and the Japanese disaster situation still warrants close monitoring and our 2011 CPI forecast of 3.8% yoy [remains] for now,” OCBC said.