Singapore CPI seen hitting 23 month high in Nov

Did someone doubt by take on inflation in Singapore?

Maybe this report will put to rest any doubt about where we are going in terms of our cost of living.

Published: Wednesday, 22 Dec 2010 | 11:45 PM ET by Thomson Reuters

WHAT: Singapore’s consumer price index for November
WHEN: Thursday, Dec 23, 0500 GMT
REUTERS FORECAST: 0.4 pct M/M s/adj, 3.8 pct Y/Y

FACTOR TO WATCH – The annual rate of inflation is seen climbing to a 23-month high of 3.8 percent in November, driven by quickly rising costs of rent, food and fuel. The previous annual high was in January 2009 when consumer prices rose 4.3 percent from a year earlier. – In monthly seasonally-adjusted terms prices may have risen 0.4 percent, the fifth consecutive rise. – Soaring car prices have been the main inflation driver since the first half of this year as the government began restricting the sale of new cars through a quota system. – The central bank has said it sees the headline inflation rising to around 4.0 percent by the end of the year and remaining elevated in the first half of next year before moderating.. – The central bank however said it was confident consumer price inflation for the whole of 2010 would come within a 2.5-3.0 percent range and inside a 2-3 percent range in 2011.

MARKET IMPACT – The Singapore dollar may strengthen if inflation exceeds expectations. – In October, the central bank widened the trading band for the Singapore dollar for the first time since just after the September 2001 attacks on the United States, underlining the depth of its concern about financial markets. – The Singapore currency has strengthened about 6.5 percent against the U.S. dollar so far this year.

COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.


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