Singapore December core inflation picks up to 0.7%

People shop at a pop-up store in Singapore April 24, 2017. REUTERS/Edgar Su/File Photo

SINGAPORE (Reuters) - Singapore’s core inflation rate picked up slightly in December, mainly due to higher services price growth, official data showed on Thursday.

The core consumer price index (CPI) rose to 0.7% from last year, versus a 0.6% increase in November. This was slightly higher than the 0.6% forecast seen in a Reuters poll.

The headline consumer price index rose 0.8% from a year earlier, slightly higher than estimates, and quickening from November’s 0.6% increase.

Core inflation is the Monetary Authority of Singapore’s preferred price gauge for setting monetary policy. It excludes changes in the price of cars and accommodation, which are influenced more by government policies.

Reporting by Aradhana Aravindan in Singapore, Editing by Sherry Jacob-Phillips