22 Jul '11, 3pm

Car and rental costs up inflation: Unexpected higher car prices and accommodation costs wil...

Car and rental costs up inflation: Unexpected higher car prices and accommodation costs wil...

Unexpected higher car prices and accommodation costs will account for almost two thirds of this year's inflation, the Monetary Authority of Singapore (MAS) said yesterday. This is why MAS is revising its forecast for the Consumer Price Index (CPI) inflation rate to 4 to 5 per cent, from 3 to 4 per cent. While it is keeping to its projected growth for Singapore, between 5 and 7 per cent, MAS added that the country now faces more uncertainties because of Europe's sovereign debt crisis and weak housing and labour conditions in the United States. Internally, inflation, which eased from 5.5 per cent in January to 4.5 per cent for April and May, is also "expected to creep back up to slightly above 5 per cent for the next few months, before slowly trending down towards the end of the year", MAS managing director Ravi Menon said at a briefing on the central bank's annual report ye...

Full article: http://www.asiaone.com/Motoring/News/Story/A1Story2011072...

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