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SINGAPORE'S inflation rose to 3.3 per cent in August, from a year ago, slightly higher than July's 3.1 per cent, due to higher transport, housing and food costs.
Excluding accommodation costs, the consumer price index climbed higher by 3.7 per cent, said the Department of Statistics on Thursday. The CPI for the first eight months of this year has risen by 2.3 per cent, from the same period last year, and was up 3 per cent if accommodation was not excluded.
Seasonally adjusted, consumer prices for August rose 0.3 per cent from July. Transport cost shot up by 9 per cent from a year earlier due to higher prices of cars and motor insurance premium, while housing rose by 3.1 per cent mainly because of higher electricity tariffs and accommodation costs. Food prices were up by 1.7 per cent, compared to a year ago.
Economists said the higher inflation is unlikely to affect the Monetary Authority of Singapore's (MAS) policy decision next month. Leong Wai Ho, an economist at Barclays Capital, told Reuters: 'This isn't a point of concern as most of the inflation you see is caused by administered price changes, like COE (car licence fees) and electricity (rates).
'The inflation number isn't unexpected given that the government is trying to tighten car supply. We still expect MAS to maintain its stance at the next policy meeting.'Mr David Cohen, an economist at Action Economics, described the 3.3 per cent jump in inflation as 'still a moderate pace.
'I don't think the central bank is going to be too upset that inflation picked up a little. It's still a close call whether they'll shift to a slightly faster appreciation of the Singapore dollar in October,' he said. Economists say consumer prices are unlikely to rise beyond the central bank's range of an average of 2.5 to 3.5 per cent this year as the economy is expected to cool in the second half of the year after a buoyant first six months, possibly even recording two quarters of contraction.
SINGAPORE'S inflation rose to 3.3 per cent in August, from a year ago, slightly higher than July's 3.1 per cent, due to higher transport, housing and food costs.
Excluding accommodation costs, the consumer price index climbed higher by 3.7 per cent, said the Department of Statistics on Thursday. The CPI for the first eight months of this year has risen by 2.3 per cent, from the same period last year, and was up 3 per cent if accommodation was not excluded.
Seasonally adjusted, consumer prices for August rose 0.3 per cent from July. Transport cost shot up by 9 per cent from a year earlier due to higher prices of cars and motor insurance premium, while housing rose by 3.1 per cent mainly because of higher electricity tariffs and accommodation costs. Food prices were up by 1.7 per cent, compared to a year ago.
Economists said the higher inflation is unlikely to affect the Monetary Authority of Singapore's (MAS) policy decision next month. Leong Wai Ho, an economist at Barclays Capital, told Reuters: 'This isn't a point of concern as most of the inflation you see is caused by administered price changes, like COE (car licence fees) and electricity (rates).
'The inflation number isn't unexpected given that the government is trying to tighten car supply. We still expect MAS to maintain its stance at the next policy meeting.'Mr David Cohen, an economist at Action Economics, described the 3.3 per cent jump in inflation as 'still a moderate pace.
'I don't think the central bank is going to be too upset that inflation picked up a little. It's still a close call whether they'll shift to a slightly faster appreciation of the Singapore dollar in October,' he said. Economists say consumer prices are unlikely to rise beyond the central bank's range of an average of 2.5 to 3.5 per cent this year as the economy is expected to cool in the second half of the year after a buoyant first six months, possibly even recording two quarters of contraction.
