Inflation in Singapore accelerated unexpectedly in November, reaching its highest level in three months, driven mainly by higher costs of food, transport and housing, the latest data from the Department of Statistics showed Friday.
Inflation rose to 5.7 percent from 5.4 percent in October. The pace quickened after moderating in the past two months. Economists had expected the rate to ease to 5.3 percent. The current inflation level matched August's three-year high.
The Monetary Authority of Singapore's core inflation measure, which excludes the costs of accommodation and private road transport, rose 0.3 percent from the previous month. Core inflation was 2.4 percent.
The increase in consumer prices from a year-ago was largely led by higher costs of housing, transport and food. The cost of housing increased by 10 percent due primarily to higher accommodation costs and electricity tariffs.
Excluding accommodation costs, the consumer price index was 4.4 percent higher in November compared to the same month last year.
There was a 11.6 percent rise in transport cost due to significant increase in certificate of entitlement premiums and petrol prices. Food prices went up by 3.6 percent, as a result of higher prices of prepared meals, seafood, dairy products and eggs, fruits, vegetables as well as chilled meat.
On a monthly basis, the consumer price index rose 0.6 percent in November, partly due to higher costs of transport, and housing.
In October, the Monetary Authority of Singapore loosened its policy stance amid weak growth outlook and expectations for a moderation in core inflation, by lowering the slope of the policy band, in turn allowing the Singapore dollar to appreciate at a slower pace.
In its Financial Stability Review released last month, the central bank said it expects the headline inflation to ease to 2.5-3.5 percent next year. Core inflation is seen between 1.5 percent and 2 percent.
The central bank also forecast economic growth to slow to below its potential rate of 3-5 percent next year. According to the latest MAS survey of professional forecasters, growth will ease to 3 percent next year from 5.2 percent this year.
Inflation rose to 5.7 percent from 5.4 percent in October. The pace quickened after moderating in the past two months. Economists had expected the rate to ease to 5.3 percent. The current inflation level matched August's three-year high.
The Monetary Authority of Singapore's core inflation measure, which excludes the costs of accommodation and private road transport, rose 0.3 percent from the previous month. Core inflation was 2.4 percent.
The increase in consumer prices from a year-ago was largely led by higher costs of housing, transport and food. The cost of housing increased by 10 percent due primarily to higher accommodation costs and electricity tariffs.
Excluding accommodation costs, the consumer price index was 4.4 percent higher in November compared to the same month last year.
There was a 11.6 percent rise in transport cost due to significant increase in certificate of entitlement premiums and petrol prices. Food prices went up by 3.6 percent, as a result of higher prices of prepared meals, seafood, dairy products and eggs, fruits, vegetables as well as chilled meat.
On a monthly basis, the consumer price index rose 0.6 percent in November, partly due to higher costs of transport, and housing.
In October, the Monetary Authority of Singapore loosened its policy stance amid weak growth outlook and expectations for a moderation in core inflation, by lowering the slope of the policy band, in turn allowing the Singapore dollar to appreciate at a slower pace.
In its Financial Stability Review released last month, the central bank said it expects the headline inflation to ease to 2.5-3.5 percent next year. Core inflation is seen between 1.5 percent and 2 percent.
The central bank also forecast economic growth to slow to below its potential rate of 3-5 percent next year. According to the latest MAS survey of professional forecasters, growth will ease to 3 percent next year from 5.2 percent this year.
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