SINGAPORE: Consumer prices in Singapore rose for a second straight month in January, on the back of recovering oil prices.
The consumer price index (CPI) - a key measure of headline inflation - rose 0.6 per cent in January from a year ago, gaining pace from the previous month’s 0.2 per cent, according to figures from the Department of Statistics on Thursday (Feb 23).
This was due to an increase in the cost of oil-related items, a smaller decline in car prices as well as higher services inflation.
Core inflation, which excludes the cost of accommodation and private road transport, rose 1.5 per cent year-on-year in January, up from the previous month's 1.2 per cent.
Consumer prices rose for the first time in December 2016 after a record two years of negative inflation.
Looking ahead, the Monetary Authority of Singapore (MAS) said core inflation is expected to average 1 to 2 per cent this year, higher than the 0.9 per cent for the whole of 2016. It said global oil prices are likely to average higher in 2017, although upward pressures would be capped by existing inventories as well as an anticipated increase in US crude oil output.
Overall inflation is projected to pick up to 0.5 per cent to 1.5 per cent this year, according to estimates by MAS and the Ministry of Trade and Industry.