The consumer price index (CPI) surged 5.7 per cent in November from the same month a year earlier, driven by higher costs of private transport and housing, according to data published yesterday by the Department of Statistics.
Transport costs jumped 11.6 per cent as a result of the increase in Certificate of Entitlement premiums and petrol prices, while housing costs rose 10 per cent on higher accommodation costs and electricity tariffs.
Food prices were not spared, rising 3.6 per cent as a result of dearer prepared meals, seafood, dairy products and eggs, fruit, vegetables, as well as chilled meat.
Not including accommodation costs, November inflation was up 4.4 per cent from the previous year. Last month's CPI was higher than the analysts' median forecast of a 5.4-per-cent on-year rise, which was the rate registered in October.
On a month-on-month seasonally adjusted basis, the CPI gained 0.6 per cent, higher than the median forecast of a 0.3-per-cent increase.
The sustained rise in consumer prices puts the Monetary Authority of Singapore (MAS) in a policy dilemma, complicating its task of keeping inflation in check without stifling growth, economists said.
J P Morgan economist Matthew Hildebrandt said: "You look around the region - base effect, slower growth, tighter policy - inflation is moderating. Here it is not."
He added: "The MAS is between a rock and a hard place. You've got pretty sticky inflation and you've got an economy that is slowing."
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