Updated: 02/24/2014 21:47

Singapore's inflation rate inched lower to 1.4%



Singapore's inflation rate inched lower to 1.4%

Singapore's inflation rate inched lower to 1.4 per cent in January due to a more moderate increase in accommodation cost and a larger decline in private road transport cost.

Private road transport cost fell by 3.5 per cent in January, following the 2.8 per cent drop in December, due to lower COE premiums at the end of 2013. 

Services inflation was slightly higher led by a stronger increase in holiday travel cost and pre-school fees. 

Food items edged up mainly reflecting the seasonal uptick in food prices during the Lunar New Year. 

The Trade and Industry Ministry and the Monetary Authority of Singapore say 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 firms face rising cost pressures from higher wages. 

Taking these into account, Singapore's headline inflation rate is expected to be between two and three per cent this year.

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