Singapore, Singapore (4E) – Singapore’s inflation rate jumped in December boosted by higher housing and transport costs. The latest data brings total inflation last year to 4.6 per cent, lower compared to the 5.2 per cent posted in 2011.
The rise in prices was mostly driven by accommodation and private road transport costs, with accommodation gaining 8.5 per cent and private road transport rising by 9.3 per cent in December from the previous year.
Out of the total inflation in December, accommodation and private road transport costs comprised for more than two-thirds of the increase.
Services inflation dropped to 2.5 per cent from 2.9 per cent as a result of lower telecommunication charges while the costs of holiday travel and medical treatment saw moderate increases.
Prices of non-cooked food and prepared meals also eased last month to 1.5 per cent, lower compared to the 1.7 per cent recorded in November.
Wages are expected to rise this year due to the tightening labor market, some of which will likely be passed on to consumer prices.
Imported inflation, meanwhile, will be “generally benign” as weakness in the global economy continues, according to a statement by the Monetary Authority of Singapore (MAS). The agency also predicts core inflation to range between 2 to 3 per cent this year.