Inflation up 4.6% in 2012

Inflation up 4.6% in 2012

SINGAPORE - Inflation on all items here increased by 4.3 per cent in December last year, the Government said today.

This brings total inflation for 2012 to 4.6 per cent, lower than the 5.2 per cent recorded in 2011.

Accommodation and private road transport accounted for most of the jump in inflation, with private road transport up by 9.3 per cent year-on-year and accommodation up 8.5 per cent in December.

Together, accommodation and private road transport costs accounted for more than two-thirds of total inflation in December.

Services inflation fell to 2.5 per cent in December from 2.9 per cent in November, led by a decline in telecommunication charges and a more moderate rise in the costs of holiday travel and medical treatment.

Inflation also eased for non-cooked food and prepared meals in December. Slower price increases led to a drop from 1.7 per cent in November to 1.5 per cent in December.

Inflation on all items is expected to remain elevated in 2013, the Ministry of Trade and Industry (MTI) said.

Total inflation for the entire year is likely to be around 3.5-4.5 per cent.

Accommodation and private road transport costs will together account for around 60 per cent of all inflation, while prices of commodity-related items and services will each contribute around one-fifth, MTI added.

In addition, global food prices remain vulnerable and could result in higher import and domestic food prices here.

A tight labour market is also expected to cause wage increases in 2013, some of which will continue to pass through to consumer prices.

Monetary Authority of Singapore (MAS)Core Inflation is expected to average 2-3 per cent for the whole of 2013.

More information can be found in the press release on the next page.

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