Global Market: Singapore core inflation hits nearly two-year high in August

Singapore’s key consumer price gauge accelerated in August to its highest level in nearly two years, reinforcing expectations that inflationary pressures will remain elevated into next year, Reuters reported.

Core inflation, which excludes private road transport and accommodation costs, rose 2.2% from a year earlier, official data showed on Wednesday. The reading was above the 2.1% median forecast in a Reuters poll and July’s 2.0% increase.

It was the highest core inflation rate since September 2024, when the measure rose 2.8%.


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Headline consumer price inflation also picked up, rising 2.3% year-on-year in August. The figure was in line with the median forecast in the Reuters poll.

The latest data come after Singapore’s central bank warned that inflation was expected to increase from July and remain elevated through the first half of next year. The Monetary Authority of Singapore tightened monetary policy in late July, citing inflation risks linked to higher energy prices.

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Singapore’s inflation outlook is also being watched alongside the country’s stronger growth prospects. The trade ministry raised its 2026 economic growth forecast in August to between 4.5% and 5.5%, from its previous projection of 2.0% to 4.0%.

The combination of firmer inflation and stronger-than-expected growth could keep price pressures in focus as policymakers assess the outlook for monetary policy, Reuters said in the report.

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