CPI-All Items inflation edged down from 4.8% in January 2012, largely on account of lower contributions from food prices and services fees. Food inflation moderated from 3.8% y-o-y in January 2012 to 2.6% in February. This was due to the seasonal decline in non-cooked food prices following the Chinese New Year. Services inflation also eased slightly to 3.0%, partly reflecting the fall in the cost of holiday travel. In addition, domestic helpers’ salaries, which had risen sharply in H1 2011, registered a more moderate increase

on a y-o-y basis.

 

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