Singapore’s inflation rate eased to 4.8 percent in January from 5.5 percent in December, marking the first time that price rises fell under five percent since May last year, according to the Monetary Authority of Singapore (MAS).
The decline was attributed to lower COE (Certificate of Entitlement) premiums seen in December, with a moderation of eight percent backed by concerns over the gloomy economy.
Meanwhile, housing costs, which grew 10 percent, was biggest contributor to inflation numbers, with rentals of new accommodation and renewed releases going up.
The MAS noted that the upswing was expected. It could also be attributed to the increase in prices of food and retail-related items within the period leading up to Chinese New Year.
Inflation will likely remain volatile and elevated in the coming months with an expected rate of about three percent caused by continued growth in housing rentals due to a shortage of completed accommodation, along with higher labour costs and shortage of COE supply.
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