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December
inflation estimated up 2.5-4.5 pct on higher food, transport
costs
Thomson Financial
18 Jan
08
http://www.thomsonfxhub.com/fxhub/news-detail.jsf?newsId=9575&pageId=0
Singapore's
consumer price index (CPI) is expected to show a further rise in
December after surging to a 25-year high in November, as prices
of food and transport continued to climb.
Inflation data
will be released by the Department of Statistics on
Tuesday.
Economists polled by Thomson Financial expect
that CPI for December will be up between 2.5 and 4.5 percent,
after rising 4.2 percent in November.
Standard Chartered
bank economist Alvin Liew predicted that December inflation will
hit 4.3 percent, bringing the average 2007 inflation to 2.1
percent.
"The increase is again likely to be (driven
by) higher food prices and transport costs," Liew said.
The
increase in food prices were exacerbated by floods in Malaysia,
which led to shortages during the festive season, he said.
"The
increase in pump prices by major petrol retailers and the 18-49
percent fare hike by major taxi operators in the middle of the
month likely brought transport inflation higher," said
Citigroup economist Leon Hiew.
Citigroup forecasts the
December CPI will be up 4.1 percent.
"We expect
inflation to continue rising, possibly breaching the 6 percent
mark in January," Hiew said.
Besides the higher costs
of food and transport, rising electricity tariffs and housing
costs were also mentioned as possible causes of the expected rise
in inflation during the month.
The following are the
estimates provided by the economists polled, compared to
year-earlier levels:
Action Economics - 2.5
percent
CIMB-GK - 4.5 percent
Citigroup - 4.1 percent
Standard Chartered Bank - 4.3 percent
(1 US dollar = 1.43
Singapore dollars)
jonathan.burgos@thomson.com
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