Singapore's inflation, which has reached its highest level in nearly two years, stood at 2.2% in August, which is lower than the expected 2.3%. Core inflation was at 2%, which also did not meet expectations:
A government release stated that prices for more imported goods and services are expected to rise.
Higher energy prices, driven by the Iran war, have lifted electricity prices. The city-state reported that consumer prices last month rose by 2.2% year-on-year, compared to the 2.3% expected by economists polled by Reuters and the 1.9% increase seen in June.
Elevated global energy prices have led to a rise in Singapore's electricity and gas charges, as well as higher transportation fares.
The Monetary Authority of Singapore tightened its monetary policy in a surprise move in July, warning that imported inflation is likely to rise in the coming quarters.
Singapore also rolled out two support packages in response to the Iran war, totaling about 2 billion Singapore dollars, which include cash handouts, consumption vouchers for households, and tax rebates for companies.
The inflation data comes as the city-state sharply upgraded its GDP forecast for the full year 2026.
