Last Updated on September 23, 2022 by Bitfinsider

According to official figures released on Friday, Singapore’s core inflation increased further in August to 5.1%, primarily due to sharper increases in the cost of food and services (Sep 23).

As the inflation rate approaches a 14-year high, this is greater than the 4.8% in July.

Singapore last reported greater core inflation rise year over year in November 2008, when it reached 5.5%.

Costs for lodging and personal transportation are not included in core inflation. The August number of 5.1% exceeded a Reuters projection of 5% by a small margin.

Inflation as measured by the headline consumer price index, or overall inflation, increased to 7.5% in August from the previous month’s reported rate of 7%.

August saw an increase in overall inflation, primarily as a result of higher prices for food, services, and private transportation.

Due to more significant price increases for both food services and non-cooked food, food inflation increased and reached 6.4% in August.

Along with a faster rate of rent increase, the cost of living increased as well, reaching 4.7% in August.

Inflation in services increased to 3.8% in August as holiday-related costs increased more rapidly.

Due to a more significant increase in auto prices, private transportation inflation increased to 24.1% from 22.22% in July.

As household durables and clothes and footwear inflation increased, the rate of growth for retail and other products also accelerated, reaching 2.9% in August.

In the meantime, thanks to a slower rise in gas costs, inflation for electricity and gas fell to 23.9% in August from 24.4% in July.

Overall inflation is predicted to be between 5% and 6% for the entire year, while MAS core inflation will likely average between 3% and 4%.