| International
Herald Tribune November 23, 2005 SINGAPORE By Shamim Adam Bloomberg News CONSUMER prices in Singapore climbed in October at the fastest pace this year, government figures showed Wednesday, Nov 23, as food and housing costs increased. The 1.1 percent rise in the Department of Statistics' Consumer Price index from a year earlier followed a 0.6 percent gain in September. Consumer prices added 0.4 percent in October from September because of higher prices for clothing and recreation. Robert Subbaraman, a senior economist at Lehman Brothers in Tokyo, said that a stronger economy, which had prompted the government to raise its growth forecast for this year, could cause faster inflation. The Singapore dollar has dropped 1.7 percent against its US counterpart in the past three months, increasing the cost of imports. "Singapore's economy has been growing above its potential growth rate and the Singapore dollar has weakened in recent months," said Subbaraman. "There is still a risk that inflation could continue to edge up next year." That likelihood would encourage the Monetary Authority of Singapore to maintain its policy of allowing a "gradual and modest" appreciation of the currency to keep inflation in check, Subbaraman said. Singapore's consumer prices rose 0.3 percent in the first ten months of the year compared with the same period in 2004, the report Wednesday said. Food prices, which make up 23 percent of the index, rose 0.8 percent in October from a year earlier, following a 0.1 percent gain in September. From September, food prices rose 0.3 percent. Transport and communication costs fell 1.3 percent from a year earlier, following September's 1.2 percent decline. From September, transport and communication prices slid 0.6 percent. Housing costs increased 1.9 percent from a year earlier, following September's 1 percent gain. From September, housing prices climbed 1.3 percent. Prices of clothes and footwear rose 0.7 percent from a year earlier, and added 1.3 percent from September. Education and stationery prices rose 2.1 percent from a year earlier, and gained 0.1 percent from September. Health care costs added 0.8 percent from a year earlier, and gained 0.2 percent from September. |
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