Singapore Inflation Accelerates More Than Expected

Singapore consumer price inflation and core inflation increased more than expected in May, data published by the Monetary Authority of Singapore and the Ministry of Trade and Industry showed on Thursday.

Consumer prices increased 5.6 percent year-on-year in May, following a 5.4 percent rise in April. Economists had expected the inflation rate to rise to 5.5 percent.

The latest increase was due to the rise in core inflation, accommodation, and private transport costs.

MAS core inflation rose to 3.6 percent in May from 3.3 percent in the previous month. Economists had forecast a rise to 3.5 percent.

The acceleration was largely driven by higher inflation for food, services, retail and other goods, and electricity and gas.

On a monthly basis, consumer prices edged up 0.1 percent in May and the core CPI gained 0.4 percent.

External inflationary pressures continued to increase amid a sharp rise in global commodity prices and ongoing supply chain frictions due to both the Russia-Ukraine conflict and the regional pandemic situation, the report said.

Core inflation is forecast to increase further in the months ahead before easing towards the end of the year as some of the external inflationary pressures recede.

For 2022 as a whole, overall inflation is forecast to come within 4.5-5.5 percent, while MAS core inflation is projected to average 2.5-3.5 percent.

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