23rd Jan 2008
© 2008 The Associated Press
SINGAPORE — Singapore's inflation hit a 25-year high in December as transportation and food costs surged, the government said Wednesday.
The consumer price index rose 4.4 percent from a year ago after rising 4.2 percent in November, the Department of Statistics said in a statement.
The rise was the fastest since April 1982 and higher than the 4.3 percent increase forecast by a Dow Jones Newswires poll of economists.
Transportation costs were a leading driver of overall inflation in December, increasing 6.4 percent from a year earlier due to more expensive gasoline and a hike in taxi fares.
Housing costs also increased as rising rents offset a decline in electricity tariffs. Prices for food were higher as a result of more expensive vegetables, milk and fruit.
The index gained 0.5 percent from the previous month in seasonally adjusted terms, surpassing a forecast for a 0.3 percent rise. Consumer prices rose 0.6 percent in November from October.
For the full year, the CPI gained 2.1 percent in 2007 after rising 1.0 percent in 2006.
The government has forecast economic growth between 4.5 percent and 6.5 percent in 2008 _ less than the 7.5 percent clip posted in 2007. Analysts say that target won't hold if the U.S. economy falters.
http://www.chron.com/disp/story.mpl/ap/fn/5477435.html