Headline inflation climbs faster in February at 4.3%

It accelerated due to higher private transport inflation.

Singapore’s headline inflation moved at a faster pace at 4.3% year-on-year (YoY) in February. Last month, it rose 4%.

The further acceleration of the headline or consumer price index (CPI)-all items inflation was on the back of higher private transport inflation which grew to 17.2%, according to the Ministry of Trade and Industry (MTI) and Monetary Authority of Singapore (MAS).

Inflation also picked up in the accommodation and retail and other goods divisions, rising to 3.3% and 0.2%, respectively.

On the other hand, inflation eased in the services (2% versus 2.4% in January)  food (2.3% versus 2.6% in January),  and electricity and gas divisions (16.7% versus 17.2% in January).

Meanwhile, MAS core inflation, which excludes accommodation and private transport, eased to 2.2% YoY in February.

For the entire 2022, MAS core inflation is estimated to hit an average 2% to 3%, while CPI-All Items inflation is forecast to reach around 2.5% to 3.5%

In the near terms, MAS and MTI said “car and accommodation cost increases are likely to remain strong in the near term, keeping headline inflation elevated.”