Singapore prices rise as economy expands

According to this IHT News Singapore's inflation rate in April held near the previous month's pace, the government said Tuesday, as an expanding economy created jobs and spurred consumer spending.

The consumer price index increased 1.1 percent from a year earlier after a 1.2 percent gain in March, the Department of Statistics said. From March to April, consumer prices rose 0.5 percent.

Singaporeans are paying more for food, housing and recreation as accelerating economic growth adds jobs and lifts wages. The island's central bank last month kept its policy of allowing a "gradual and modest" currency appreciation to help reduce the cost of fuel and other imported goods.

"Consumer spending has been rising as the labor market and the economy strengthened, and that is pushing prices higher," said Tomo Kinoshita, an economist at the Singapore unit of Nomura Securities. "The rise in prices may be mitigated by the central bank's monetary policy to allow the currency to appreciate."