Public transport fare hike expected to add 0.17 percentage point to 2024 core inflation: MTI

THE recently announced 7 per cent increase in public transport fares – which will take effect on Dec 23 this year – is expected to contribute 0.17 percentage point to Singapore’s core inflation rate in 2024, said Trade and Industry Minister Gan Kim Yong in a written answer to a parliamentary question on Wednesday (Oct 4).

Public transport fares, which comprise bus and train fares, account for 1.6 per cent of the country’s CPI-All Items inflation basket, and 2.5 per cent of the Monetary Authority of Singapore’s core inflation basket, which excludes private transport costs.

Gan was also asked about the impact of higher certificate of entitlement (COE) prices.

“We are unable to project COE prices next year and hence its impact on inflation,” he said. Car prices, which include COE premiums, account for 7.4 per cent of the headline inflation basket.