Singapore\u2019s inflation rose to its highest level in nearly two years\nin July 2026, although the actual figure was still slightly below\neconomists\u2019 expectations. The rise in global energy prices due to the\nIran war was one of the factors driving up electricity costs and several\ntransport fares in the city-state.<\/p>\n
Singapore government data on Monday (24\/8\/2026) showed the consumer\nprice index rose 2.2% year-on-year (yoy) in July. The figure was higher\nthan the 1.9% increase in June, but still below the 2.3% expected by\neconomists surveyed by Reuters.<\/p>\n
On a monthly basis, the consumer price index actually experienced\ndeflation of 0.2%.<\/p>\n
The rise in inflation occurred as global energy prices remained at\nhigh levels. These conditions then impacted electricity and gas costs in\nSingapore, while also driving up transport fares.<\/p>\n
The Monetary Authority of Singapore (MAS) together with Singapore\u2019s\nMinistry of Trade and Industry (MTI) said the rise in global energy\ncosts had driven increases in electricity and gas tariffs as well as\ntransport costs.<\/p>\n
\u201cGlobal oil prices remain high and volatile, while adverse weather\nconditions are expected to reduce agricultural output and raise prices\nof Singapore\u2019s imported food,\u201d said a joint statement from MAS and MTI,\nas quoted by CNBC International.<\/p>\n
The two institutions also expect prices of other imported goods and\nservices to increase going forward.<\/p>\n
Price pressures were also visible in Singapore\u2019s core inflation. This\nindicator excludes private transport and accommodation prices. Core\ninflation was recorded at 2%, lower than economists\u2019 projection of\n2.2%.<\/p>\n
Nevertheless, the inflation development is noteworthy because\nSingapore had previously taken a surprising step in its monetary\npolicy.<\/p>\n
MAS in July decided to tighten monetary policy, while warning that\ninflation originating from imported goods could potentially increase in\nthe coming quarters.<\/p>\n
The warning relates to rising fuel costs as well as electronic inputs\nthat could increase pressure on prices in Singapore.<\/p>\n
The impact of the Iran war on Singapore\u2019s economy has also prompted\nthe government to issue support measures for the public and\nbusinesses.<\/p>\n
Singapore previously launched two aid packages in response to the\nimpact of the Iran war. The total value of the two packages reached\naround S$2 billion.<\/p>\n
The assistance includes cash handouts to the public, consumption\nvouchers for households, and tax rebates or relief for companies.<\/p>\n
The measures were provided as cost-of-living pressures increased due\nto rising energy and imported goods prices.<\/p>\n
The latest inflation data also coincided with a sharp increase in\nSingapore\u2019s economic growth projection for 2026.<\/p>\n
The Singapore government now expects the country\u2019s economy to grow\n4.5%-5.5% throughout 2026.<\/p>\n
The projection is far higher than the lower bound of the previous\nestimate, which was in the range of 2%-4%. Thus, the lower bound of the\nlatest growth projection is more than double the previous lower\nbound.<\/p>\n
The increase in the growth projection comes amid strong economic\nactivity in Singapore, including a boost from industrial developments\nrelated to artificial intelligence (AI).<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/singapore-inflation-hits-highest-level-heres-the-culprit-1787554316", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }