Headline inflation came in below market expectations of 5.4% at a y-o-y increase of 5.1% in spite of accommodation costs remaining high, as private road transport costs continued to ease on a y-o-y basis.
Analysts see Singapore’s inflation momentum easing towards the end of the year, with both core and headline inflation moderating in May.
Singapore’s core inflation slowed to an increase of just 0.1% m-o-m in May, which translates into y-o-y inflation of 4.7% for the month, down from 5.0% in April. Stronger inflationary momentum in food, utilities and communications was offset by sharper disinflation in public transport and clothing.
