Inflation eases to 5.1% in May

MTI attributed the moderation to lower private transportation inflation.

The rate of price increase eased to 5.1% in May 2023, data from the Ministry of Trade and Industry (MTI) and Monetary Authority of Singapore (MAS) showed.

In April 2023, inflation was at 5.7%.

The moderation of the headline or consumer price index (CPI)-all items inflation was due to the fall of private transport inflation (7.2% YoY from 10.4% YoY) and lower core inflation (4.7% YoY from 5.0% YoY).

Other expenditure divisions which saw a decline in the rate of price increase were services (3.9% YoY from 4.3% YoY), food (6.8% YoY from 7.1% YoY), accommodation (4.7% YoY from 4.9% YoY), retail and other goods (2.8% YoY from 2.9% YoY).

The decline in services and food inflation pushed the MAS core inflation down to 4.7% YoY in May.

On the other hand, price movements picked up for electricity and gas (3.3% YoY from 2.7%) due to a larger increase in electricity costs.

For 2023, MAS and MTI expect headline inflation and core inflation to average 5.5–6.5% and 3.5–4.5%, respectively.