Consumer prices up 2.5% in April

INFLATION in Singapore grew at a faster clip in April - rising from 1.2 per cent year on year in March to 2.5 per cent last month - though the acceleration was slightly less than economists had expected.

Both the government and private sector analysts had been expecting stronger price increases in April, given the low base a year ago. Back then, certificate of entitlement (COE) premiums had dropped off, following the introduction of car loan curbs.

Indeed, the jump in April's consumer price index (CPI) was largely due to a rise in car prices; private road transport costs climbed 5.7 per cent in April, reversing four consecutive months of decline. The increase reflected the rise in COE premiums - exacerbated by the low base in April 2013 - and an edging up of petrol pump prices.