S'pore CPI rises on COE fluctuations
CONSUMER price inflation in Singapore picked up a little more than expected to 2.7 per cent last month.
The median forecast of 21 economists polled by Bloomberg - before the Department of Statistics released data yesterday - was for a 2.6 per cent year-on-year rise in the consumer price index (CPI) .
The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry said in joint comments that the rise was "due to base effects associated with the fluctuations in COE (certificate of entitlement) premiums".
Apart from private road transport costs - which climbed by a stronger 8.1 per cent last month compared to April's 5.7 per cent - price increases for all other major categories moderated slightly during the month.
Accommodation costs rose by 0.9 per cent last month versus 1.1 per cent in the preceding month, due to a slower pace of increase in imputed rentals on owner-occupied accommodation.
MAS' core-inflation measure, which excludes accommodation and private road transport costs, moderated to 2.2 per cent from April's 2.3 per cent.
This was due to lower contributions from services and food items. Services inflation edged down to 2.5 per cent from 2.7 per cent in April, as holiday travel costs and health insurance premiums rose more moderately.
Food inflation came in slightly lower at 3 per cent last month, compared to 3.1 per cent in the previous month, reflecting a smaller increase in non-cooked food prices.