Singapore December CPI was +4.6% on year, compared with November’s +3.8% and the +4.5% tipped by a Dow Jones poll of economists. The rise was fueled by higher prices for transport, housing and food, government data show.

Inflation is likely to be the biggest worry for the MAS in 2011; the result is likely to fuel increased expectations for the central bank to tighten policy at its April review, for the third-straight time. 

Data show transportation costs were +12.8% on year in December due to higher car and fuel prices; housing prices were +5.1% on higher electricity tariffs and accommodation costs; food prices were +2.1% on year on costlier items such as prepared meals, fresh seafood, vegetables, rice and other cereals.

 

December CPI was +0.9% in seasonally-adjusted terms, vs November’s +0.4%, +0.6% tipped in poll of economists.