Singapore’s core inflation accelerated to 2% year-on-year in July from 1.6% in June, driven by higher electricity and gas, services and food prices, according to data from the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI).
The reading was below the 2.2% median forecast in a Reuters poll. On a month-on-month basis, core prices, which exclude accommodation and private transport, rose 0.3%.
Overall inflation also picked up to 2.2% in July from 1.9% in June, although it came below the 2.3% forecast in the Reuters poll. On a monthly basis, overall inflation fell 0.2%.
Electricity and gas inflation swung from a 2.9% decline in June to an 8.7% increase in July, mainly due to higher electricity prices. Services inflation rose to 1.7% from 1.5%, while food inflation edged up to 2.2% from 2.1%.
Accommodation inflation also increased to 0.8% from 0.6%, while private transport inflation eased to 8% from 8.4%.
MAS and MTI said elevated global energy prices have pushed up electricity and gas tariffs as well as transportation costs, while volatile oil prices and adverse weather conditions could add to imported food costs.
The authorities expect core and overall inflation to average between 1.5% and 2.5% in 2026, in line with the full-year forecast range.
However, they cautioned that risks remain tilted to the upside, citing potential disruptions to global energy supplies and adverse weather conditions, while stronger-than-expected global demand linked to IT investment could also make inflation more persistent.
Core inflation is expected to remain elevated into 2027 before moderating more clearly from the middle of the year as global energy prices are expected to ease.
CNA
