Singapore inflation continues to rise in November
Singapore (VNA) -
Prices in Singapore are rising more sharply than expected, with inflation at
its highest in several years.
It is attributed to greater domestic demand for goods and services as the economy
recovers.
On the flip side, prices are also being driven up by rising import
costs amid global transportation bottlenecks.
Overall
inflation edged up to 3.8 percent in November, from October’s more than the eight-year high of 3.2 percent. It outdid the 3.4 percent forecast by analysts
polled by Bloomberg.
Core inflation, excluding rents and
private trucking costs, rose to 1.6 percent, from 1.5 percent in October, amid
rising service costs and it is expected to grow in the coming months.
Private transport inflation rose to
17.9 percent in November, from 14.3 percent of the previous month due to an
increase in car prices. Electricity
and gas costs also saw a remarkable increase – at 10 percent in November, compared
with October’s 7.8 percent as some retailers exited the market.
Services inflation rose to 1.9 percent from 1.6 percent in October, due to a faster pace of increase in airfares
as border restrictions eased. Home rents rose, leading to accommodation
inflation of 2.7 percent, compared with October’s 2.5 percent. Food inflation
also climbed to 1.9 percent in November, from 1.7 percent the previous month.
MAS and MTI raised their overall
inflation forecast for this year to 2.3 percent, up 2 percent compared to the
previous forecast, given the sharp rise in private transport costs in recent
months. They kept their overall inflation estimate for 2022 unchanged at 1.5-
2.5 percent. The core inflation is projected to be at 0.9 percent for 2021 and
increase 1-2 percent further in 2022.
The MAS and MTI said on December 23
that wages have increased and are anticipated to continue to rise at a steady pace as the
labour market dissipates, thereby, driving up both costs and prices./.