Singapore’s CPI inflation in December likely rose to 4.5% on year from 3.8% in November on higher food and transport costs, according to the median forecast from a Dow Jones poll of 10 economists. 

The index likely rose 0.6% on-month, seasonally adjusted, from +0.4% in November. “While inflation looks increasingly broad-based as service costs start creeping higher within the CPI basket, year-end festivities were also likely to be a factor driving up prices of food and holiday travel,” Standard Chartered Bank economist Alvin Liew says in a note. He adds, the high cost of cars remains the single biggest CPI driver in Singapore in 2010. 

 

If CPI rises as analysts expect, it would outpace MAS’ expectation of inflation “close to 4%” by end-2010. Still, it’s unlikely to prompt any immediate tightening moves by the MAS, which is likely to wait until its April monetary policy review. December CPI data is due Monday at 1:00 p.m.