Singapore's Nov inflation moderates to 3.6% on-year
Posted: 24 December 2012 1406 hrs
SINGAPORE: Singapore's inflation moderated to 3.6 per cent on-year in November, down from 4.0 per cent in October and lower than what economists had expected.
Data released by the Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore (MAS) on Monday showed that the lower consumer price index (CPI) last month was mainly due to slower increases in housing and transports costs.
Accommodation costs rose 6.6 per cent in November, down from October's 6.8 per cent, on the back of smaller rental increases in both public and private housing.
Private road transport costs also slowed to 6.7 per cent, from 8.3 per cent in October due to lower car prices.
Combined, transport and housing accounted for just under two-thirds of the CPI-All Items in November, according to the MTI and MAS.
Marginal cost increases in holiday travel and healthcare also slowed services inflation to 2.9 per cent in November from 3.1 per cent in October.
But food inflation held steady at 1.7 per cent.
The November core inflation rate which excludes transport and accommodation also fell to 2.0 per cent last month, from 2.2 per cent in October.
MAS and MTI said imported inflation will be generally benign, while the persistent tightness in the labour market will support wage increases in 2013.
The central bank has forecast a full-year inflation of slightly above 4.5 per cent this year and between 3.5 per cent and 4.5 per cent in 2013.
Economists say the base effect from last year's higher inflation also kept November's inflation lower.
But they expect housing, transport and services costs to inch higher in the coming months.
- CNA/al/xq
- wong chee tat :)
