March inflation slows to 5.1 pct

Following the Chinese New Year holiday and accompanying shopping frenzy, prices for recreation and culture dropped 6.43 per cent in March compared to February. The decrease can also be seen in clothing and footwear prices which experienced a 2.52 per cent decrease on a monthly comparison
According to the Statistics and Census Service (DSEC), the composite consumer price index (CPI) increased 5.1 per cent year-on-year, slightly down from the 5.3 per cent growth in February 2015. Rising rentals and higher charges for eating out remained the main drivers of the increase in CPI.
The latest data from DSEC also show that the higher wages of domestic helpers and increasing rentals for parking spaces put up the price of household goods and transport by 1.69 per cent and 1.52 per cent respectively.
The cost of housing and fuel increased 10.58 per cent last month from a year ago. That’s the sixth consecutive month of slower price growth and the smallest increase for almost two years. Only in July 2013 did rents rise less than last month, with a 9.04 per cent hike, data from DSEC reveals.
With inflation in housing costs reaching the 10 per cent mark, the property market could return to single digit growth rates that were the norm before the summer of 2013. In 2012, real estate prices went up 6.7 per cent, in 2011 3.4 per cent, and in 2010 housing costs only increased 0.02 per cent.
For the 12 months ended March 2015, the average composite CPI increased by 5.77 per cent from the previous period. The figure for the first quarter of this year increased by 5.05 per cent year-on-year.