Singapore’s core inflation rises to 2% in July on higher electricity and gas, services, food prices

Singapore's core inflation rose to 2% year-on-year in July, higher than the 1.6% in June, according to the Monetary Authority of Singapore and the Ministry of Trade and Industry. This increase was attributed to higher electricity and gas prices, services sector costs, and food prices. Electricity and gas inflation jumped to 8.7% in July, mainly due to a significant rise in electricity tariffs.

Services inflation reached 1.7% in July, driven by surging airfares and point-to-point transport services prices. Food inflation also climbed to 2.2% in July, with food services and non-cooked food prices rising faster. Accommodation inflation rose to 0.8% in July, with housing rents and maintenance fees increasing. Private transport inflation declined, falling from 8.4% to 8% in July due to reduced petrol and diesel price hikes.

Overall inflation, as measured by the Consumer Price Index-All Items, reached 2.2% in July from 1.9% in June. Efforts to counter inflation include government subsidies dampening services inflation. Core and overall inflation for 2026 are projected to average 1.5% to 2.5%, with core inflation expected to remain elevated into 2027 before moderating.

Risks to the inflation outlook remain tilted upward, including potential disruptions in global energy supplies or adverse weather conditions.