Singapore inflation up 6.6% from a year earlier

Singapore's consumer price index (CPI) increased by 6.6 per cent in January from a year earlier, according to data released by the Department of Statistics on Monday.

Higher costs of food, housing, transport and communication contributed to the rise.

Compared to a month earlier, the CPI in January went up by 1.3 per cent, or 1.5 per cent on a seasonally adjusted basis.

Food prices were 1.1 per cent higher due to higher prices of cooked food, fresh fish, poultry and pork following greater demand prior to Lunar New Year period in early February.

Housing cost and healthcare costs also increased 4.1 and 1.3 per cent respectively in January.

Transport and communication costs, however, fell marginally by 0.1 per cent as lower car prices more than offset higher taxi fares.

The Ministry of Trade and Industry said the 6.6 per cent year-on-year increase was consistent with the official inflation forecast of 4.5 to 5.5 per cent for 2008. It added that it largely reflects a low base 12 months ago.

The ministry noted that as the effects of the low base and one-off factors wear off in the second half of 2008, year-on-year inflation is expected to moderate significantly.