Dec's easier inflation unlikely to last

[SINGAPORE] Headline inflation may have moderated more than expected in December - easing to 1.5 per cent from 2.6 per cent in November - but economists say inflation is unlikely to stay this low for long, especially with domestic cost pressures driving up consumer prices in 2014.

The better-than-expected figure was largely due to a decline in private road transport costs, which was in turn thanks to lower COE premiums.

Economists polled by Bloomberg had been expecting a 2 per cent rise in the consumer price index (CPI) in December from a year ago; the lowest of 16 estimates was a 1.6 per cent increase.