Singapore Sept inflation far higher than forecasts

Singapore Sept inflation far higher than forecasts

SINGAPORE - Singapore's consumer price index rose by a stronger-than-expected 4.7 per cent in September from a year earlier as the costs of private road transport and accommodation climbed.

The Monetary Authority of Singapore's (MAS) core inflation measure rose 2.4 per cent year-on-year, faster than August's 2.2 per cent.

Economists polled by Reuters had expected September inflation to edge higher to 4.2 per cent from August's near two-year low of 3.9 per cent.

Core inflation excludes the cost of accommodation and private road transport, which are strongly influenced by government policy, and is the figure the MAS pays more attention to when deciding monetary policy.

In mid-October, the MAS defied forecasts by keeping monetary policy tight and allowing the Singapore dollar to appreciate at its current pace as it warned of persistent inflationary pressures in a slowing economy.

Singapore's trade-dependent economy contracted more than expected in the third quarter and barely avoided a recession due to a revision to the second quarter numbers.

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