Singapore inflation hits nearly two-year high in July
MacroDigital Finance
Singapore's Department of Statistics reported that core inflation, which excludes housing and private transport costs, rose to 2% in July from a year earlier, the fastest pace in nearly two years, or since October 2024, driven by higher utilities costs as elevated global energy prices began to affect Singapore households. However, core inflation remained below the 2.2% forecast by analysts. Headline inflation came in at 2.2%, below the 2.4% expected. Utilities and other fuel costs jumped 6.1% in July from a year earlier amid higher energy costs caused by the prolonged war in the Middle East. Singapore, which imports almost all the energy it uses, has had to raise electricity and gas tariffs to record highs in the third quarter of 2026. Transport inflation surged to 7.9%, while food inflation rose to 2.2%. The Singapore government has injected nearly 2 billion Singapore dollars in support since the war between the United States and Iran began earlier this year. The Monetary Authority of Singapore announced it would continue tightening monetary policy at its meeting last month and still expects core inflation this year to be in the 1.5% to 2.5% range, while warning that inflationary pressures could remain elevated until mid-2027.
