Accommodation costs jumped by 5.1% in May

Blame it on higher rentals.

According to Maybank Kim Eng, accommodation cost increased by +5.1% YoY (Apr 2013: +2.4% YoY) on the back of higher rentals on owner-occupied units.

The pickup also reflect the one-off effect of the S&CC rebates disburse d to households residing in HDB flats that contributed to the deceleration in “Housing” cost in Apr 2013.

Here's more from Maybank Kim Eng:

Headline inflation rate in May 2013 remained benign at +1.6% YoY (Apr 2013: +1.5% YoY) while the core inflation rate (CPI excluding accommodation and private road transport) was +1.7% YoY (Apr 2013: +1.4% YoY).

This was the first time in over five years that core inflation rate outpaced headline inflation rate. From the previous month, headline inflation gained by +0.4% YoY (Apr 2013: -1.5% YoY)

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