Singapore's annual inflation picked up in May, after hitting the lowest level in more than three years in April, as a fall in car prices was more than offset by price gains in the other major categories.
Inflation as per the consumer price index moved up to 1.6 percent in May from 1.5 percent in April, which was the lowest rate since February 2010, a combined statement by the Ministry of Trade and Industry and the Monetary Authority of Singapore showed Monday. Inflation was forecast to remain unchanged at 1.5 percent.
The pick in inflation reflected a 2 percent rise in food prices, after gaining 1.8 percent in April. At the same time, accommodation costs rose at a faster rate of 5.1 percent than April's 2.4 percent.
Diminishing the impact of these rises, costs of private road transport fell by 3.7 percent during the month, the first decline since 2009, reversing April's 0.5 percent rise. The fall was mainly due to lower Certificate of Entitlement premiums and price adjustments by car dealers following the implementation of the motor vehicle-related policy measures.
Overall consumer prices edged up 0.4 percent from April when it was down 1.5 percent.
The index of Monetary Authority of Singapore's Core Inflation measure, which excludes the costs of accommodation and private road transport, rose 1.7 percent year-on-year in May, following April's 1.4 percent growth.
"Imported inflation will likely remain subdued this year, given ample supply buffers in the commodity markets," the MAS said.
"However, domestic cost pressures are expected to persist amid continuing tightness in the labour market, and cost pass-through to prices of consumer services could pick up slightly." The MAS forecasts that headline inflation will likely come in the 3-4 percent range this year. At the same time, core inflation is expected to rise moderately in the second half of the year and average 1.5-2.5 percent in 2013.
This month, professional forecasters from the MAS downgraded their growth forecast for this year to 2.3 percent from the prior estimate of 2.8 percent. In the second quarter, the economy is seen growing 1.5 percent, slower than 2 percent estimated earlier.
The city-state economy expanded at a notably slower pace of 1.8 percent sequentially in the first quarter than the 3.3 percent growth recorded in the fourth quarter. The latest figure, however, marked a notable improvement from the advanced estimates that showed a 1.4 percent contraction.
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May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.