A general view shows the skyline of the financial business district in Singapore on October 20. (Photo: AFP/VNA)

Singapore (VNA) -Prices in Singapore are rising more sharply than expected, with inflation atits highest in several years.

It is attributed to greater domestic demand for goods and services as the economyrecovers.

On the flip side, prices are also being driven up by rising importcosts amid global transportation bottlenecks.

Overallinflation edged u🌟p to 3.8 percent in November, from October’s more than the eight-year high of 3.2 percent. It outdid the 3.4 percent forecast by analystspolled by Bloomberg.

Core inflation, excluding rents andprivate trucking costs, rose to 1.6 percent, from 1.5 percent in October, amidrising service costs and it is expected to grow in the coming months.

Private transport inflation rose to17.9 percent in November, from 14.3 percent of the previous month due to anincrease in car prices. Electricityand gas costs also saw a remarkable increase – at 10 percent in November, comparedwith October’s 7.8 percent as some retailers exited the market.

Services inflation rose to 1.9 percent from 1.6 percent in October, due to a faster pace of increase in airfaresas border restrictions eased. Home rents rose, leading to accommodationinflation of 2.7 percent, compared with October’s 2.5 percent. Food inflationalso climbed to 1.9 percent in November, from 1.7 percent the previous month.

MAS and MTI raised their overallinflation forecast for this year to 2.3 percent, up 2 percent compared to theprevious forecast, given the sharp rise in private transport costs in recentmonths. They kept their overall inflation estimate for 2022 unchanged at 1.5-2.5 percent. The core inflation is projected to be at 0.9 percent for 2021 andincrease 1-2 percent further in 2022.

The MAS and MTI said on December 23that wages have increased and are anticipated to continue to rise at a steady pace as thelabour market dissipates, thereby, driving up both costs and pric๊es./.