Singapore: Inflation continues to accelerate
September 23, 2011
In August, consumer prices added 0.7% over the previous month, which was less than half the 1.5% price climb recorded in July. The monthly reading was mainly driven by higher prices for private road transport, accommodation as well as clothing and footwear. Meanwhile, annual inflation jumped from 5.4% in July to 5.7% in August, which represented the highest level since October 2008. The reading contrasted market expectations that had inflation falling to 5.2%. As a result, annual average inflation, which is the reference for monetary policy decisions, maintained its upward trend, rising from 4.5% in July to 4.7% in August. The government forecasts inflation this year at average between 4.0% and 5.0%.