Singapore's CPI rises to 2.6% in November

Singapore's consumer price inflation rose to 2.6 percent in November, compared with 2 percent in October, the Department of Statistics said on Monday. The rise in inflationary pressure was in line with expectations, as service and conservancy charges rebates to most of the resident households had kept housing-related costs down in October, the Ministry of Trade and Industry and the Monetary Authority of Singapore (MAS) said. Accommodation cost in November rose by 3.3 percent year on year, higher than the 1.9 percent increase in October. Increases in accommodation cost accounted for around half of the 0.6 percent pick-up in overall inflation in the month. Private road transport costs climbed 3.4 percent, following an increase of 2.7 percent in October, mainly as a result of higher prices for car ownership certificates. Petrol pump prices were also higher. Services inflation increased to 2.8 percent in November from 2. 5 percent in October. Food inflation inched up to 2.6 percent from 2.5 percent in the previous month. The Monetary Authority said overall imported inflation is expected to remain subdued because of spare production capacity in the advanced economies and ample supply buffers in the commodity markets. However, the pass-through of domestic costs to prices of consumer services could intensify as a result of the rising cost pressures that firms are facing from business rentals and labor costs. The MAS core inflation, which excludes accommodation cost and private road transport cost, is expected to rise over the next few quarters and average 1.5 percent to 2 percent in 2013 and 2 percent to 3 percent in 2014. The overall headline inflation is projected to come in at 2.5 percent to 3 percent in 2013, and 2 percent to 3 percent in 2014.