Singapore’s inflation rate hit 4.5 percent in May, fuelled mostly by increasing housing costs.
According to the Department of Statistics, the monthly Consumer Price Index (CPI) climbed 4.5 percent in May on the back of higher housing, food and transport costs. It increased 0.6 percent month-on-month in the preceding month.
Some experts said the increase was higher than expected. However, they expect moderation in the coming months.
Chow Penn Nee of UOB Economic-Treasury Research said that the inflation rate will likely moderate further in the coming months, due to rebates on housing and utilities, as well as the impact from monetary policy tightening by the Monetary Authority of Singapore (MAS).
“Together with the slowing global growth, that should see demand for commodities moderate and ease inflationary pressures somewhat,” said Ms. Chow.
Meanwhile, housing costs in the country surged 3.1 percent month-on-month, as rebates for conservancy charges and services were given in April and not in May.
Housing costs climbed 8.1 percent last month compared to a year ago, driven by higher electricity tariffs and accommodation costs.
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