Singapore inflation accelerates to 1.2 per cent in March
Inflation in Singapore jumped to 1.2 per cent in March from 0.4 per cent in February due largely to a smaller fall in car prices, according to the Monetary Authority of Singapore and the Ministry of Trade and Industry.
In a joint statement on Wednesday, the agencies said that the cost of private road transport fell by 2.8 per cent in March, a smaller decline than the 7.1 per cent recorded the previous month.
“The smaller decline reflects the dissipation of high base effects of car prices a year ago,” they said.
Accommodation costs rose by 1.7 per cent in March, lower than the 2 per cent increase in February, which MAS and MTI attributed to a smaller rise in imputed rentals on owner occupied homes.
Inflation for services increased to 2.4 per cent from 2.1 per cent over the same period due to the stronger increase in the cost of household services and holiday travel, the agencies said.
Food inflation stood at 2.9 per cent in March, higher than the 2.3 per cent hike in February, as prices stabilised after Chinese New Year.
Prices of oil-related items fell by 0.3 per cent in March, after a 1.8 per cent decline in February, as the lower electricity and gas tariffs were partially offset by the rise in petrol pump prices, the statement said.
Prices of alcoholic beverages and tobacco products rose during the month, reflecting the increase in excise duties introduced on 21 February.
Core inflation, which excludes accommodation and private road transport costs, increased to 2 per cent from 1.6 per cent in February, due to higher food prices and services costs.
MAS and MTI expect inflation to rise in the next few months due to the low base set last year by lower COE premiums but ease in the second half of the year.
Inflation is projected to fall between 1.5 and 2.5 per cent in 2014.