SINGAPORE – Singapore’s core inflation edged up in June, with higher energy costs expected to raise production and transport costs for a wider range of the country’s imported goods and services over time.
Core inflation – which excludes private transport and accommodation to better reflect household expenses – came in at 1.6 per cent in June, up from 1.4 per cent in May.
Overall inflation was 1.9 per cent in June, up slightly from 1.8 per cent in May. This was due to higher accommodation inflation, in addition to the pickup in core inflation, the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) said in a joint release on July 23.
“A slower-than-expected resumption in global energy supplies or continued shortages in key intermediate inputs to regional supply chains could further raise imported costs for Singapore,” said the authorities
“However, downside risks are also present. A stronger-than-expected tightening in global financial conditions could lead to a slowdown in economic activity and thus lower inflation.”
For now, private transport inflation dipped from 8.6 per cent in May to 8.4 per cent in June because of a smaller increase in petrol prices.
Food inflation rose 0.3 percentage points to 2.1 per cent in June, from 0.8 per cent in May, as the prices of both non-cooked food and food services increased at a faster pace.
Retail and other goods inflation crept up to 1.7 per cent in June, from 1.6 per cent in May, on the back of larger increases in the prices of both furniture and other recreational goods.
Higher housing rents pushed accommodation inflation to 0.6 per cent in June, from 0.5 per cent in May.
Services inflation rose to 1.5 per cent in June, compared with 1.3 per cent in May on account of larger increases in airfares and holiday expenses.
Electricity and gas prices fell by 2.9 per cent in June, compared with 3 per cent in May, due to a smaller decline in electricity prices.
Regulated electricity tariffs for each quarter is set based on the average natural gas prices in the first 2½ months of the preceding quarter, among other factors.
Hence, higher global energy prices over the period of April to mid-June 2026 will be reflected only in the regulated electricity tariff in the third quarter of 2026, starting from July.
Source : https://www.straitstimes.com/business/economy/singapores-core-inflation-edges-up-in-june
