Singapore inflation rises on higher fuel and retail prices

Singapore’s consumer inflation accelerated in March, driven mainly by higher transport and retail prices amid an energy shock linked to tensions in the Middle East, according to a statement from Statistics Singapore on Thursday.

Headline inflation rose to 1.8% year-on-year in March, up from 1.2% in February, as price increases gained momentum across private transport, retail goods, and other services, News.Az reports, citing foreign media.

Core inflation, which excludes accommodation and private transport in order to better reflect household spending patterns, also edged higher to 1.7% in March from 1.4% a month earlier.

The sharpest rise was recorded in private transport costs, where inflation jumped to 6.6% year-on-year from 2.4% in February, driven largely by higher petrol prices that pushed up overall transport expenses.

Retail and other goods inflation also increased, rising to 1.8% in March from 0.6% in February. This was mainly due to stronger price increases in alcohol, tobacco, clothing, and footwear.

Services inflation rose slightly to 2.1% from 2% over the same period, supported by higher costs in point-to-point transport services and telecommunications.

Food inflation remained unchanged at 0.6% in March, as prices for non-cooked food increased at the same rate as in February.

In contrast, electricity and gas prices fell by 4.3% year-on-year in March, unchanged from the previous month.

The inflation data came amid a severe energy shock following disruptions in the Middle East that affected flows through the Strait of Hormuz, a key route for global crude oil and liquefied natural gas trade.

Brent crude prices initially surged toward $120 per barrel after the waterway’s closure before stabilizing around $100, while ongoing shipping restrictions have continued to sustain supply concerns even after a ceasefire.

News.Az 

By Nijat Babayev