Singapore: Singapore's consumer inflation accelerated in March, driven mainly by higher transport and retail prices amid a Middle East energy shock, according to a statement by Statistics Singapore on Thursday. Headline inflation rose to 1.8% year-on-year in March, up from 1.2% in February, as price increases gathered pace in private transport, retail, and other goods and services.

According to Anadolu Agency, core inflation, which excludes accommodation and private transport to better reflect household spending, also edged higher to 1.7% in March from 1.4% a month earlier. The sharpest increase came from private transport, where inflation surged to 6.6% year-on-year from 2.4% in February, as higher petrol prices pushed up costs.

Retail and other goods inflation also accelerated to 1.8% in March from 0.6% in February, mainly due to steeper price increases for alcohol and tobacco as well as clothing and footwear. Services inflation rose slightly to 2.1% from 2% over the same period, supported by higher costs for point-to-point transport services and telecommunications.

Food inflation was unchanged at 0.6% in March, with non-cooked food prices rising at the same pace as in February. Meanwhile, electricity and gas prices fell 4.3% year-on-year in March, unchanged from the previous month.

The data came against the backdrop of a severe energy shock after the Iran war disrupted flows through the Strait of Hormuz, a key artery for global crude and LNG trade. Brent crude initially climbed toward $120 a barrel after the waterway's closure before stabilizing around $100, while continued restrictions on shipping have kept supply concerns elevated even with a ceasefire.