Singapore: Inflation continues to moderate in February
March 23, 2012
In February, consumer prices dropped 0.3% over the previous month, which contrasted the 0.9% price increase seen in January. The monthly price decline was mostly the result of lower food and transport prices, which offset higher costs for housing. Owing to the subdued monthly price increase, annual inflation dropped from 4.8% in January to 4.6%, which marks the lowest level since May 2011 and defied market expectation that had annual inflation rising to 5.0%. Annual average inflation remained unchanged from the previous month at 5.2%. The Monetary Authority of Singapore's (MAS) annual core inflation measure, which excludes the costs of accommodation and private road transport, moderated from 3.5% in January to 3.0%. The MAS expects that inflation will average between 2.5% and 3.5% this year.