Singapore: Inflation drops to lowest level in eight months
February 23, 2012
In January, consumer prices rose 0.9% over the previous month. The reading came in well above December's flat print but at nearly half the 1.6% increase recorded in January 2011, prompting annual inflation to drop markedly from 5.5% in December to 4.8%. The inflation reading marked the slowest pace since May 2011 and was only a notch above market expectations that had inflation at 4.7%. January's monthly price increase was mainly driven by higher prices for housing, food as well as education and stationery. As a result, the Monetary Authority of Singapore's (MAS) annual core inflation measure, which excludes the costs of accommodation and private road transport, jumped from 2.6% to 3.5%. The MAS expects that inflation will average between 2.5% and 3.5% this year.