Inflation up 2.7 per cent in May on higher COE premiums

Private road transport costs climbed by 8.1 per cent in May, stronger than the 5.7 per cent rise in the preceding month, mainly on account of lower Certificate of Entitlement premiums in May 2013. -- ST PHOTO: CAROLINE CHIA
Private road transport costs climbed by 8.1 per cent in May, stronger than the 5.7 per cent rise in the preceding month, mainly on account of lower Certificate of Entitlement premiums in May 2013. -- ST PHOTO: CAROLINE CHIA

SINGAPORE - Inflation accelerated to 2.7 per cent in May from 2.5 per cent the previous month, mainly because cars were pricier compared with May last year.

Prices of most other goods and services went up at a slower pace last month compared with the same period last year, the Statistics Department said on Monday. Retail price increases, for instance, eased due to the commencement of the Great Singapore Sale.

Private road transport costs climbed by 8.1 per cent in May, stronger than the 5.7 per cent rise in the preceding month, mainly on account of lower Certificate of Entitlement premiums in May 2013. Petrol pump prices also edged up at a faster pace than in April.

Services inflation moderated to 2.5 per cent from 2.7 per cent in April, as holiday travel cost and health insurance premiums rose more slowly, said the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry in a joint statement.

Food inflation came in slightly lower at 3 per cent in May compared to 3.1 per cent in the previous month, reflecting a smaller increase in non-cooked food prices.

The MAS' core inflation measure, which excludes the cost of accommodation and private road transport, dipped slightly to 2.2 per cent from 2.3 per cent the preceding month.