S'pore inflation stays at 7.5pc in May

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SINGAPORE, June 23 (AFP): Singapore's annual inflation rate stayed at 7.5 per cent in May, boosted by rising food, transport and housing costs, the government said today.

The monthly consumer price index (CPI) was the same as the 7.5 per cent recorded for April-which was a 26-year high-but lower than the 7.7 per cent forecast by economists polled by Dow Jones Newswires.

Food prices rose by 9.0 per cent year-on-year in May, more than the 8.5 per cent in April, while housing costs jumped by 12.4 per cent, against April's 11.8 per cent, data from the statistics department showed.

From April to May, the CPI rose by 0.2 per cent, the statistics department said.

In the first five months of the year, the CPI was 7.0 per cent higher compared with the same period last year, it said.

Singapore, Southeast Asia's most advanced economy, imports most of its needs because it lacks the natural resources and agricultural base of its bigger neighbours.

The trade ministry and the de facto central bank are forecasting inflation of 5-6 per cent for the year.