Hanoi (VNA) –Singapore’s inflation is forecast to rise slightly this year due to the impactsof global petrol and food prices, according to the Monetary Authority of Singapore (MAS) and the Ministry for Trade andIndustry (MTI).

Globaloil prices have rallied since the start of 2018 and are expected to averagehigher for the full year as compared to 2017. Meanwhile, global food commodityprices are projected to rise slightly as demand increases amid ample supplyconditions, said the MAS and the MTI.

Domesticsources of inflation are expected to increase alongside a faster pace of wagegrowth and a pickup in domestic demand. 

However,the extent of consumer price increases will remain moderate, as retail rentshave stayed relatively subdued and firms’ pricing power may be constrained bymarket competition.

TheMAS - the central bank of Singapore - forecast that core inflation, whichstrips out the cost of accommodation and private road transport, will stay at1.5 percent this year while headline inflation be above 0.5 percent.

Singapore’sheadline inflation held steady in August with prices up 0.7 percentyear-on-year, mostly due to increase in food and retail prices.

This was in line with economist expectations andjust a tick faster than the 0.6 percent in July.

Theoverall cost of retail items went up by 2 percent in August, up from 1.6 percentrise in July. This was due to a faster pickup in the prices of clothing andfootwear, as well as an increase in the prices of personal care products.

Food inflation edged up to 1.7 percent in Auguston the back of a faster pace of increase in the prices of non-cooked food itemsand prepared meals.

Coreinflation rose by 1.9 percent in August – unchanged from July. These twoconsecutive months marked the fastest rate of increase since August 2014, whenit climbed 2 percent./.