SINGAPORE--Singapore's inflation cooled more than expected in March, continuing a bumpy trajectory, as prices in key categories like food, transport and utilities rose at a slower pace.
The country's consumer price index climbed 2.7% last month from a year earlier, the Department of Statistics said Tuesday. That compares with the 3.4% increase recorded in February, and was below the median estimate of a 3.1% rise projected in a survey of 11 economists by The Wall Street Journal.
Core CPI, which strips out private road transport and accommodation costs, climbed 3.1% in March from a year earlier, the data showed. That compares with February's 3.6% increase and expectations in the WSJ poll for a 3.5% reading.
Analysts had anticipated that the data would show that price pressures moderated slightly, but stayed elevated, in part due to major concerts held in the city-state that attracted a large number of travelers, boosting service prices. Higher oil prices amid renewed Middle East tensions and geopolitical uncertainty were also seen as supporting oil-sensitive sectors like transport.
Continued high levels of inflation will likely add to expectations the Monetary Authority of Singapore will keep monetary-policy settings tight.
The central bank doesn't have a set target for inflation but views that, on average, a core inflation rate of just under 2% is consistent with price stability in the economy. It held policy steady at its last meeting in April, saying current settings are necessary to keep imported inflation and domestic cost pressures in check.
March's headline slowdown was largely due to a decline in private transport costs, in addition to lower core inflation, MAS and the Ministry of Trade and Industry said in a joint statement.
MAS projects that Singapore's headline and core inflation for this year will average 2.5%-3.5%. Excluding the impact of a hike in the goods-and-services tax, core and headline inflation are forecast at 1.5%-2.5%.
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