Singapore inflation up again

Singapore’s consumer price index (CPI) surged to 5.2 percent in June, close to January’s peak of 5.5 percent, fuelled by higher housing, food and transport costs.

According to the Department of Statistics, rising inflation can be attributed mainly to housing and transport costs, which comprise a respective 25 and 16 percent of the total CPI that is used to track price changes.

Latest data showed that Singapore housing costs climbed 8.8 percent year-on-year, attributed to higher accommodation and electricity tariffs, while higher car and petrol prices also saw transport costs increase by 10.4 percent.

The MAS added that prepared meals, dairy products, eggs, seafood, meat, poultry, vegetables and fruits also contributed to June’s higher inflation, which pushed the food component 3.1 percent higher compared to a year ago.

Ravi Menon, Managing Director of the Monetary Authority of Singapore (MAS), said last week that consumer prices will increase one percentage point to five percent over the next few months, before trending down towards the end of 2011.

Inflation edged up five percent in the first half of 2011, up from 3.7 percent in the second half of last year.

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