Singapore: Inflation moderates in May
June 25, 2012
In May, consumer prices rose 0.2% over the previous month, which came in below the 0.5% price increase observed in April. As in previous months, higher prices for transport, in particular private transport amid higher Certificate of Entitlement (COE) premiums for cars, contributed importantly to the monthly increase. In addition, prices for accommodation also rose in May. Owing to the relatively subdued monthly reading, annual inflation fell from 5.4% in April to 5.0% in May, which came in a notch below market expectations that had inflation at 5.1%. Annual average inflation, however, remained stable at 5.3%. The Monetary Authority of Singapore's (MAS) annual core inflation measure, which excludes the costs of accommodation and private road transport, remained unchanged over April at 2.7%. The MAS expects inflation to average between 3.5% and 4.5% this year.