In view of the acceleration in inflation that occurred in January and further upward revisions to our forecast of global prices for non-oil commodities in 2011, we have revised up our expectation of average consumer price inflation in Singapore this year to 4.1%, from 3.2% previously. The housing category will exert a strong upward influence on consumer prices as Singapore Power increases its electricity tariffs in line with rising global oil prices. However, transport costs are unlikely to continue to rise at their current rapid pace on a year-on-year basis (accelerating inflation during much of 2010 was driven largely by a surge in the cost of government-issued licences for vehicle ownership). Moreover, the appreciation of the Singapore dollar (in line with the MAS's policy of allowing the NEER to strengthen) will help to damp down import price pressures in 2011. From 2012 onwards inflation is forecast to slow, owing to moderating global prices for oil and non-oil commodities.