Published:
Private transport costs to drive inflation higher in 2013
CPI dipping to 3.6% may not help.
According to Nomura, headline CPI declined to 3.6% from 4.3% y-y in Dec, largely on account of the lower food and housing components, which offset a higher transportation component.
Core inflation, an important determinant of the MAS’s monetary policy, eased to just 1.2% y-y (from 1.9% in Dec).
"Inflation is expected to remain elevated in 2013F, led by private transport and accommodation cost with the underlying inflation remaining sticky due to tight labour markets and wage pressure," Nomura said.
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