Official statistics released on Friday indicated that Singapore's core inflation jumped to 5.1% in August, driven mostly by greater rises in the costs of food and services (Sep 23).
This is greater than the 4.8% recorded in July, as the inflation rate approaches its highest level in 14 years.
Singapore last reported greater year-over-year rise in core inflation in November 2008, when it reached 5.5%.
Core inflation excludes housing and transportation costs. The August number of 5.1% was somewhat higher than the Reuters prediction of 5%.
In August, the headline consumer price index, or total inflation, increased to 7.5% year-over-year, exceeding the 7% recorded in July.
The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) stated in a joint press statement, "The jump in headline inflation was mostly due to greater private transport inflation, as well as the acceleration in core inflation."
In August, overall inflation rose mostly owing to increasing prices for private transportation, food, and services.
In August, food inflation increased to 6.4% due to sharper rises in the prices of both food services and uncooked food.
In addition to a quicker rate of growth in home rentals, accommodation inflation increased in August to 4.7%.
In August, services inflation increased to 3.8% due to a rise in the cost of vacation spending.
Inflation for private transportation increased to 24.1% from 22.2% in July due to a greater increase in automobile prices.
Prices of retail and other items increased at a quicker rate in August, reaching 2.9%, as inflation for durable home goods and apparel and footwear accelerated.
Meanwhile, the inflation rate for electricity and gas decreased to 23.9% in August, from 24.0% in July, due to a lesser increase in gas costs.
On average, MAS core inflation is anticipated to be between 3% and 4% for the whole year, compared to a predicted range of 5% to 6% for the total rate of inflation.
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