Accommodation inflation increased to 3.9 per cent from 2.1 per cent in January as , additional Service &, Conservancy Charges ( S&, CC ) rebates, which were disbursed in January, were not disbursed in February.
Services prices increased to 4.2 per share in February from 3.3 per share in January , mainly due to higher tickets and a sharper increase in vacation costs.
Food prices rose to 3.8 per share compared with 3.3 per share in January as the prices of roasted and non- prepared food rose at a faster pace.
Electric and gas prices edged along to 5.3 per share because of the slower rate of increase in electricity prices.
Personal transport prices fell from 2.9 per share in January to 1.4 per cent in February due to a slower rate of increase in vehicle rates, which in turn reflected lower COE prices.
” Amid the larger projected COE supply this year, private transport inflation is expected to be lower as compared to last year” , , said MAS and MTI.
” Accommodation prices may also remain to comfortable as the supply of housing units available for rental rises over the course of the month”.
OUTLOOK
Core inflation is expected to resume a continuous moderating pattern over the rest of the time, said MAS and MTI, as transfer cost pressures continue to decline and fit in the local labour market eases.
They projected both title and core inflation to general 2.5 per share to 3.5 per cent for 2024.
Excluding the temporary results of the GST increase, title and main prices are expected to come in at 1.5 per share to 2.5 per cent.
” Upside risks to inflation remain, including from new shocks to international energy and shipping costs due to political conflicts, higher food commodity prices from severe weather events, as well as more prolonged- than- expected tightness in the home labour market”, said MAS and MTI.
” Conversely, an unexpected weakening in the global economy could induce a greater easing of cost and price pressures”.