No thanks to higher private road transport and accommodation inflation.
CPI-All Items inflation rose to 0.6% YoY in November on the back of higher private road transport and accommodation inflation, according to a press release from the Monetary Authority of Singapore and the Ministry of Trade and Industry.
Private road transport inflation increased to 4.1% MoM in November from 2.2% mainly due to an increase in car prices.
Services inflation edged up to 1.6% MoM in November from 1.5%. This was on account of a rise in airfares as well as a larger increase in telecommunications services fees and holiday expenses.
Food inflation was unchanged from the previous month at 1.5%, as the pace of increase in prices for non-cooked food and food services was similar in both months.
The overall cost of retail items registered a smaller 0.5% increase in November compared to the 0.9%increase in October. This largely reflected a fall in the prices of personal care products, as well as a smaller rise in the prices of personal effects.
Imported inflation is likely to rise modestly amidst improving global demand in key commodity markets. Global oil and food commodity prices are similarly expected to increase slightly.
“Overall, cost pressures in the economy should remain relatively restrained. Although labour market conditions have improved recently, the gradual absorption of previously accumulated slack will temper wage pressures in the near term. Meanwhile, other non-labour costs such as commercial and retail rentals continue to be subdued,” the press release added.
CPI-All Items inflation is expected to come at around 0.5% this year and stay in the range of 0-1% next year as accommodation costs continue to dampen inflation.
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