Singapore core inflation remains at 3.1% for a third month

Although consumer prices appear sticky, analysts believe inflation is on track to ease

- Claire Huang

Core inflation in Singapore stayed the same for three months in a row through May, when Singaporeans paid more for their holiday trips.

Although consumer prices appear sticky, analysts believe inflation is on track to ease.

Official data released on June 24 showed that core inflation, which excludes private transport and accommodation costs to better reflect the expenses of households here, remained at 3.1 per cent year on year in May – unchanged from April and March.

Services inflation in May came in at 3.6 per cent on the back of a larger increase in holiday expenses and a smaller decline in prices of airfares.

The rise in services inflation was offset by lower inflation for electricity and gas, retail and other goods.

Food inflation was unchanged at 2.8 per cent.

Overall or headline inflation in May rose to 3.1 per cent year on year from 2.7 per cent in April, led by a jump in prices of vehicles and petrol.

Inflation rose the most for private transport, where costs increased 2.8 per cent year on year in May, due to pricier cars and motorcycles, as well as petrol prices going up at a faster pace. It was up 0.3 per cent in April.