On a month-on-month seasonally adjusted basis, the consumer price index rose 0.2 percent. The central bank's core inflation measure rose 0.3 percent month-on-month and 2.3 percent year-on-year. Singapore's core inflation excludes the cost of accommodation and private road transport, which are strongly influenced by government policy. "The result was above the market consensus at 5.2 percent and IFR's 5.3 percent forecast, and reflected gains in most components led by food and housing. Even the MAS core measure accelerated to its fastest in a year, though at 2.3 percent over the year, up from 2.1% in September." "Inflation has held above 5 percent since June, but given low underlying inflation and subdued cost pressures for the majority of Singaporeans who live in public housing and use public transport, no policy response can be expected." "Dimming global prospects and weakness in some sectors of the local economy suggests price pressures peaked in August when inflation hit 5.7 percent." CHOW PENN NEE, ECONOMIST, UNITED OVERSEAS BANK "Inflation has peaked in August at 5.7 percent... We see November inflation above 5 percent and December inflation to be below 5 percent." "We expect core inflation to come down next year to around 1.8 to 1.9 percent. With core and headline inflation expected to come down next year and slowing growth, we feel that monetary policy has more room for easing." MARKET REACTION The Singapore dollar traded around S$1.3050 against the US dollar, from 1.3052 from before the CPI data was released. The benchmark FTSE ST Index was down 1.48 percent. It was down 1.46 percent before the release of the CPI data.