INFLATION CLIMBS TO 5.9% IN FEBRUARY

INFLATION CLIMBS TO 5.9% IN FEBRUARY
Mar 22, 2011 - PropertyGuru.com.sg

Inflationary threats are definitely increasing and food inflation has also been rising steadily, said DBS, adding that inflation surged to 5.9 percent in February this year.

During the Lunar New Year, retailers seized the opportunity created by heightened demand for food products to increase their prices.

While this is usually apparent before the festive season, a spill-over into the succeeding month is also expected. This involves higher food inflation.

Food accounted for 22 percent of the consumer price index (CPI) basket and food inflation has been increasing consistently over the past year.

Food inflation surged from 0.2 percent in January 2010 to 2.8 percent during the same period this year. Consistent with the UN food price index, food inflation has already exceeded its 2008 peak and continues to increase.

Supply-side shocks accounted for most of the increases. However, the possibility of strong demand on the back of positive economic growth in the region should not be discounted.

Info courtesy : - PropertyGuru.com.sg