Singapore inflation slows to 3.6% in November, below forecast

PHOTO: Singapore inflation slows to 3.6% in November, below forecast

Singapore's Department of Statistics released consumer price index (CPI) data for November on Monday.

At 3.6 per cent, November's year-on-year inflation was below the 4.0 per cent median estimate of economists polled by Reuters.

Private road transport was the biggest contributor to November inflation, rising 6.7 per cent from a year earlier, down from 8.3 per cent year-on-year in October. Accommodation costs rose 6.6 per cent, down from October's 6.8 per cent.

The Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore (MAS) said services inflation inched down to 2.9 per cent in November from 3.1 per cent in October on account of smaller increases in the cost of holiday travel and medical treatment.

MTI and MAS said imported inflation will be generally benign, while the persistent tightness in the labour market will support wage increases in 2013.

They said headline inflation will remain elevated in the fourth quarter of 2012 and the first quarter of 2013, reflecting significant contributions from imputed rentals on owner-occupied accommodation and car prices.

The outlook for inflation was unchanged at slightly above 4.5 per cent in 2012 and between 3.5 per cent and 4.5 per cent in 2013.