2017.06.2302:33:00UTC+00Singapore Inflation Accelerates Notably On Base Effects

Singapore inflation accelerated notably in May mainly due to a change in the timing of the disbursement of Service & Conservancy Charges rebates.

Consumer prices climbed 1.4 percent year-on-year in May compared to a 0.4 percent rise in April, data from the Monetary Authority of Singapore and the Ministry of Trade and Industry showed Friday. Economists had forecast prices to climb 1.3 percent.

Meanwhile, core inflation slowed to 1.6 percent from 1.7 percent due to lower services inflation.

Due to the base effects associated with timing of S&CC rebates, cost of housing accommodation declined only 1.5 percent compared with a 6.7 percent fall in April.

Private road transport inflation eased to 6.1 percent. On the other hand, food inflation picked up to 1.5 percent from 1.3 percent.

On a monthly basis, consumer prices gained 0.3 percent, offsetting April's 0.3 percent fall. At the same time, core consumer prices fell 0.2 percent.

For 2017, core inflation is expected to average 1-2 percent, compared with 0.9 percent in 2016, while overall inflation is projected to rise to 0.5-1.5 percent from -0.5 percent last year.