Singapore's core inflation rose to 2 per cent year-on-year in July, up from 1.6 per cent in June, according to official figures released on Monday (Aug 24). The increase was driven by higher costs for electricity and gas, services, and food.
The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) reported that core inflation, which excludes private road transport and accommodation costs, rose due to a pickup in these categories. Headline inflation also increased, reaching 2.5 per cent in July, up from 2.4 per cent in June.
Economists had expected a slight rise, but the actual figures came in line with forecasts. The MAS and MTI noted that while global supply chain pressures have eased, domestic factors such as labor costs and services demand continue to exert upward pressure on prices.
Looking ahead, the authorities expect core inflation to remain elevated in the coming months, but gradually ease towards the end of the year as the effects of the GST hike and other one-off factors fade. The full-year forecast for core inflation remains at 2.5 to 3.0 per cent, while headline inflation is projected at 2.5 to 3.5 per cent.
