Chart of the Day: Private transport cost growth slowed down in April

It rose by just 0.5%.

According to MAS and MTI, CPI-All Items inflation eased to 1.5% in April from 3.5% in March. This moderation, which had been anticipated in the March Inflation Report, largely reflected the continued effects of the motor vehicle-related policy measures introduced since late February, as well as the temporary impact from the disbursement of government rebates for HDB service & conservancy charges (S&CC).

Private road transport cost edged up by 0.5% in April, a significantly smaller rise compared to the 8.6% increase a month earlier. The deceleration was due to lower COE premiums in March and price adjustments by car dealers following the implementation of the motor vehicle-related policy measures.

As a result, the contribution of private road transport to CPI-All Items inflation fell to 0.1% point from 1.2% points in the preceding month.

Accommodation cost inflation slowed to 2.4% in April from 5.8% in March due to the disbursement of S&CC rebates for HDB households. The rebates led to a fall in the cost of minor repairs & maintenance which partially offset the rise in imputed rentals on owner-occupied accommodation.

On the whole, accommodation cost contributed 0.5% point to CPI-All Items inflation, down from 1.2% points in March.

The rise in services fees eased slightly to 2.2% in April from 2.5% in the previous month, due to a decline in holiday travel cost and a smaller increase in school tuition fees.

Prices of oil-related items declined by a steeper 5.2% in April relative to the 2.8% fall in the preceding month, mainly due to lower electricity tariffs and petrol pump prices compared to a year ago.

Food inflation was stable at 1.8% in April.