Singapore’s consumer price index surged higher than expected in April, according to official data reported by Reuters.

The key gauge of consumer prices increased by 5.0% compared to the previous year, exceeding the 4.7% forecast from a Reuters poll of economists.

Meanwhile, core inflation, excluding private road transport and accommodation costs, rose 5.0% year-on-year in April.

The Monetary Authority of Singapore (MAS) and the trade ministry stated that while inflation for electricity, gas, food, retail, and other goods decreased, higher inflation for travel-related services was offset.

Headline inflation climbed by 5.7% year-on-year in April, surpassing the predicted 5.5% increase in the Reuters poll.
MAS expects core inflation to average between 3.5% and 4.5%, while headline inflation is forecasted to be between 5.5% and 6.5% for the year.

Surprisingly, MAS did not change its monetary policy settings last month, defying economists’ expectations of tightening measures in response to elevated inflation concerns and uncertainties regarding Singapore’s growth outlook.