By Teh Shi Ning
Consumer price inflation in Singapore picked up a little less
than expected to 2.5 per cent in April, from 1.2 per cent in March.
The median forecast of 16 economists polled by Bloomberg before the Department of Statistics released the data on Friday was for a 2.6 per cent year-on-year rise in the consumer price index (CPI)
The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) said in joint comments that the rise was anticipated and reflected a rise in COE premiums that was exacerbated by the low base a year ago.
Petrol pump prices also edged up at a faster pace, leading to a 5.7 per cent rise in overall private road transport costs in April - reversing four straight months of decline.
Accommodation costs rose at a slower pace of 1.1 per cent in April, compared to 1.7 per cent in March, due to a smaller increase in imputed rentals on owner-occupied accommodation.
With the exception of accommodation, all other major categories showed slightly stronger price increases in April.
As a result, MAS core inflation, which excludes accommodation and private road transport costs, rose to 2.3 per cent from 2 per cent in March.
Services inflation rose to 2.7 per cent from March's 2.4 per cent, due to a pickup in holiday and public road transport costs.
And steeper price increases in non-cooked food and prepared meals led to food inflation of 3.1 per cent, up from 2.9 per cent in March.
Retail-related items also added more to overall inflation in April, MAS and MTI noted. "Notably, clothing and footwear prices rose after four consecutive months of decline," they said.
"Domestic cost pressures, particularly stemming from a tight labour market, are likely to remain the primary source of inflation," said MAS and MTI.
Core inflation is thus expected to stay elevated at 2-3 per cent in 2014, while headline inflation is projected to come in at 1.5-2.5 per cent for the year.
The median forecast of 16 economists polled by Bloomberg before the Department of Statistics released the data on Friday was for a 2.6 per cent year-on-year rise in the consumer price index (CPI)
The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) said in joint comments that the rise was anticipated and reflected a rise in COE premiums that was exacerbated by the low base a year ago.
Petrol pump prices also edged up at a faster pace, leading to a 5.7 per cent rise in overall private road transport costs in April - reversing four straight months of decline.
Accommodation costs rose at a slower pace of 1.1 per cent in April, compared to 1.7 per cent in March, due to a smaller increase in imputed rentals on owner-occupied accommodation.
With the exception of accommodation, all other major categories showed slightly stronger price increases in April.
As a result, MAS core inflation, which excludes accommodation and private road transport costs, rose to 2.3 per cent from 2 per cent in March.
Services inflation rose to 2.7 per cent from March's 2.4 per cent, due to a pickup in holiday and public road transport costs.
And steeper price increases in non-cooked food and prepared meals led to food inflation of 3.1 per cent, up from 2.9 per cent in March.
Retail-related items also added more to overall inflation in April, MAS and MTI noted. "Notably, clothing and footwear prices rose after four consecutive months of decline," they said.
"Domestic cost pressures, particularly stemming from a tight labour market, are likely to remain the primary source of inflation," said MAS and MTI.
Core inflation is thus expected to stay elevated at 2-3 per cent in 2014, while headline inflation is projected to come in at 1.5-2.5 per cent for the year.
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