Consumer prices in Singapore rose a tad faster than expected in December because of costlier cars, housing, food and fuel, prompting some analysts to say that the central bank may tighten monetary policy again in April.

The consumer price index gained 4.6% in December from a year earlier, compared with a 3.8% increase in November, the Department of Statistics said in a statement Monday. The pace was the fastest in two years and beat the median 4.5% forecast from 10 analysts polled by Dow Jones Newswires.

 

“It’s not such a huge surprise. It’s because of the low base (of comparison) and rising commodity costs. The very solid growth in Asia is putting pressure on prices,” said Song Seng Wun, an economist at CIMB who had forecast the CPI to rise 4.5% in December. “If this continues, the Monetary Authority of Singapore may tweak its policy a bit in April, meaning another round of tightening.”

 

The MAS, which tightened monetary policy at both its reviews in April and October last year, had said that it expects inflation to near 4% by the end of 2010, and to remain high in the first few months of 2011 before easing.