January's inflation highest in 27 months, up 5.5%

[alvin]

INFLATION hit a 27-month high in January, surprising even the most bullish of economists.

Feb 23, 2011
January's inflation highest in 27 months, up 5.5%
By Aaron Low

The Consumer Price Index (CPI) rose 5.5 per cent in January, higher than the 4.65 per cent average expectation among private sector economists.

The bulk of the increase was due to rising private transport costs, as well as housing and food.

The last time the CPI hit above 5.5 per cent was in October 2008, and the higher inflation recorded last month has prompted economists to raise expectations of a tighter monetary policy, when the Monetary Authority of Singapore releases their first of two policy statements for the year in April.

Last week, the Government unveiled a slew of policies and cash handouts to help families, especially low-income households, cope with the rising cost of living.