Singapore core inflation stays firm at 14-yr high of 5.5% in Feb

Overall inflation eases to 6.3% in February

- Claire Huang

Core inflation may have held firm in February after a faster rise in electricity and retail prices offset a slower increase in services costs, but some analysts believe respite is in sight amid the global banking turmoil.

Core consumer prices, which exclude private transport and accommodation costs, and reflect the expenses of Singapore households more accurately, went up 5.5 per cent year on year in February, unchanged from January. Still, the figure is the highest since November 2008.

The February figure is lower than the 5.8 per cent expected by analysts in a Bloomberg poll.

Core inflation picked up in January, after it plateaued from October to December, partly due to the higher goods and services tax that had just kicked in. Before October, it went up for eight straight months.