Singapore on Wednesday reported annual inflation of 5.5 percent for December, slightly down from November's three-year high of 5.7 percent, but it warned that cost pressures will stay elevated for a few more months before easing.

"Year-on-year inflation in CPI-All Items will likely remain elevated over the next few months," the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) said in a joint statement.

"Notably, the continued increase in housing rentals, due to a temporary shortage of completed dwellings, will cause imputed rentals on owner-occupied accommodation to rise further in the near term," MAS and MTI added.