Inflation is up 4.5%

These are the Singapore inflation rates for 2011:
January: 5.5%
February: 5.0%
March: 5.0%
April: 4.5%


Transport and Housing are once again leading the pack, rising by 11.7% and 5.1% respectively year on year. The inflation level is quite similar to March except for a notable increase in Transport inflation. This is most probably due to the increase of commodities pricing, which has also affected the Recreation & Others inflation.

It was reported that there was a taming of inflation from 5%, but if you look at the numbers, there has been an increase of inflation for Food, Transport and Others. The only saving grace was that housing rebates were given out in April. Otherwise, the inflation would have even been higher. This month's inflation will be similar to April, give or take a little.

Based on the current trend, it will seem that the average inflation for 2011 will be around 4.5% to 4.6%. Many factors will affect it though like the PIIG economies, China slowdown and of course, our dear US. These factors will most probably cause the inflation to tread lower.