Singapore will defer its mid-year review of bus and subway train fares till the fourth quarter of the year, delaying what will likely have resulted in higher cost of public transport, the Straits Times newspaper reported on Tuesday.

Singapore’s public transport fare review mechanism takes into account inflation and average wage changes in the preceding year, meaning operators SMRT (SMRT.SI) and ComfortDelgro (CMDG.SI) would have gotten the greenlight to raise fares at the next review.

A spokesman for the Public Transport Council, a government-appointed watchdog, told the Straits Times the delay in the fare review will enable the council to assess the impact of the completion of the Circle Line subway line later this year.

Inflation in Singapore hit a two-year high in December, and the central bank has warned prices may rise at a faster pace in coming months before slowing in the second half of 2011.

The ruling People’s Action Party has also indicated it will call a general election soon.