24 Apr '13, 10am
By making #cars harder to own, wealthy island state #Singapore cools #inflation.
The high cost of living in the wealthy island state of Singapore may be a major bone of contention among its residents, but moves by the government to cool the auto market is having an impact on rising consumer prices. Singapore's headline inflation in March eased to 3.5 percent from the previous year, the lowest since October 2010. That's also down from a rate 4.9 percent in February - mainly due to a big drop in COE (certificate of entitlement), a mandatory 10-year license fee paid by car owners, on top of the cost of the vehicle. Currently, the average cost of obtaining a COE is just over $50,000, compared to around $70,000 in early March. (Read More: World's Most Expensive Car Market Just Got Pricier ) Vincent Conti, Asia-Pacific economist at ANZ said measures introduced in February such as financing restrictions on car loans, which make it more difficult for the avera...