Singapore Nov inflation +5.7 pct y/y, exceeds consensus

Reuters – Fri, Dec 23, 2011

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* Nov CPI +0.7 m/m s/adj vs +0.33 pct f/cast

* Nov CPI +5.7 pct y/y vs +5.3 pct f/cast

* MAS's core inflation measure +0.3 pct m/m; +2.4 pct y/y

SINGAPORE, Dec 23 (Reuters) - Singapore's Department of Statistics released consumer price index data for November on Friday:

PCT NOV OCT SEP AUG JUL JUN MAY APR

*MoM 0.7 0.2 0.0 0.5 0.6 0.4 0.6 0.0

YoY 5.7 5.4 5.5 5.7 5.4 5.2 4.5 4.5

* Data is seasonally adjusted

CONTEXT:

- Transportation prices rose 11.6 percent from a year ago due to "the significant increase in Certificate of Entitlement premiums and petrol prices", the Department of Statistics said.

- Housing costs gained 10.0 percent year-on-year due to higher rents and electricity tariffs. "The higher accommodation costs mainly reflected higher imputed rentals of owner-occupied accommodation, which has no impact on the cash expenditure of owner-occupied households," the department added.

- The central bank's core inflation measure, which excludes changes in the price of cars, accommodation and other categories influenced by government policy, rose 0.3 percent month-on-month, similar to October's 0.3 percent pace.

- The core inflation measure rose 2.4 percent in November from a year ago, unchanged from 2.3 percent in October.

- Prices in Singapore rose 5.2 percent in January to November compared to the year-ago period.

- The Monetary Authority of Singapore (MAS) expects inflation of 2.5 to 3.5 percent next year, compared to around 5 percent this year.

MARKET IMPACT:

- November's higher-than-expected inflation figure makes it difficult for the central bank to ease its tightening bias despite continued weakness in manufacturing, in particular electronics.

- MAS retained its bias for a modest and gradual appreciation of the Singapore dollar in its October monetary policy statement, but said it would reduce the pace of appreciation.

(Reporting by Kevin Lim)