Inflation in September up 4.7% year-on-year, well above forecasts

SINGAPORE (REUTERS) - Singapore inflation hit 4.7 per cent in September compared to the previous year, according to data released by the Department of Statistics on Tuesday. 

September's year-on-year inflation exceeded the estimate of all 11 economists polled by Reuters. The median estimate was 4.2 per cent.

Private road transport was the biggest contributor to September inflation, rising 10.8 per cent from a year earlier. The rise in August was 6.3 per cent. Accommodation costs rose 7.7 per cent in September, higher than August's 7.4 per cent.

The Ministry of Trade and Industry (MTI) and Monetary Authority of Singapore (MAS) reiterated forecasts made in the MAS's October monetary policy statement that headline inflation will be slightly above 4.5 per cent in 2012 before easing to 3.5 to 4.5 per cent in 2013.