Singapore May Inflation Steadies At 4.5%
2011-06-23 13:08:41
Inflation in Singapore stabilized at its lowest level in five months in May, data from the Department of Statistics showed Thursday.
The inflation rate came in at 4.5 percent in May, unchanged from April. Economists were expecting the rate to ease to 4.2 percent. Excluding accommodation costs, inflation was 3.3 percent.
The consumer price index, or CPI, rose 0.6 percent month-on-month in May. However, Excluding accommodation costs, the index fell 0.2 percent from previous month.
The core CPI tracked by the Monetary Authority of Singapore, or MAS, declined 0.1 percent month-over-month in May. The annual core inflation rate was 2.1 percent.
The increase in CPI was led by higher costs of housing, transport and food, the statistical agency said. Transport costs were up 7.5 percent, reflecting higher prices of cars and petrol.
Housing costs rose by 8.1 percent, and Food prices rose a more modest 2.8 percent, largely due to dearer prepared meals, seafood, vegetables, meat and poultry, dairy products and eggs as well as fruits.
The annual inflation rate has eased after the central bank tightened its policy for the third time in a row in April.
The MAS re-centered the exchange rate policy band upwards, but below the prevailing level of the S$ Nominal Effective Exchange Rate.
Singapore does not set monetary policy by an interest rate. Instead, the MAS sets an exchange rate band for the local dollar, through which it controls the fluctuations in the currency.
The statistical office also reported that the consumer price index moved up 4.9 percent in the January to May period compared with the same period last year. Excluding accommodation costs, the consumer price index increased by 4.3 percent.
According to the latest quarterly survey of professional forecasters published by the MAS earlier this month, Singapore's inflation is likely to reach 4.1 percent this year compared to 4 percent predicted earlier.
The MAS forecast annual inflation to moderate gradually this year, expecting it to come in at the upper half of the 3 percent - 4 percent forecast range.