Singapore inflation holds at 1.8% in May, cooler than expected as services costs ease

A shopper browses vegetables at a wet market in Singapore, on Wednesday, Dec. 22, 2021. Bloomberg | Bloomberg | Getty Images Inflation in Singapore held steady at 1.8% in May, falling short of economists' expectations as lower prices for telecommunication services helped offset increases in private transport, accommodation, retail and food costs. The figure was below the 2% expected by economists polled by Reuters and unchanged from the 1.8% recorded in April. Higher car and motorcycle prices drove up private transport inflation, while accommodation, retail and food costs also contributed to overall price growth, according to government data. Core inflation, which strips out accommodation and private transport costs, came in at 1.4%, against the 1.6% forecast. The Monetary Authority of Singapore said in a statement that while energy prices have eased recently, they remain elevated relative to 2025 levels. "As higher energy costs pass through global supply chains with a lag, they are expected to raise production and transport costs for a wider range of Singapore's imported goods and services over time," the central bank wrote. It also said that service labor costs are likely to increase at a slower pace this year as nominal wage growth eases, adding that domestic consumer spending could turn more cautious amid the economic uncertainty. …