Singapore Inflation Hits 1.6% in June, Expected to Prompt Tighter Monetary Policy

Macro
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Singapore's core inflation rose to 1.6% year-on-year in June, accelerating sharply from 1.4% in May, though it came in below analysts' forecast of 1.7%. Headline inflation stood at 1.9%, below the expected 2%. Food inflation quickened to 2.1%, while services inflation jumped to 1.5% due to higher airfares and holiday travel costs, and transport inflation surged to 7.5%. The rapid pickup in inflation reflects that rising global energy costs are starting to feed through to consumer prices, which may pressure the Monetary Authority of Singapore to adopt a tighter policy stance at its meeting on July 27.

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