Singapore’s core inflation climbs to 2.2% in August

Singapore's core inflation rose to 2.2% in August, according to the Singapore Department of Statistics. This increase was primarily driven by higher inflation rates for services, retail, and other goods, as well as food. The core inflation metric, which excludes private transport and accommodation, saw a rise from 2% in July to 2.2% in August.

Overall inflation for August stood at 2.3%, up from 2.2% in July, as the higher core inflation more than compensated for the decrease in private transport inflation, which slowed to 7.5% from 8% in July due to a smaller rise in car prices. Services inflation ticked up to 2% in August, from 1.7% in July, primarily due to faster price growth for airfares and point-to-point transport services.

Retail and other goods inflation also increased to 1.8% in August, from 1.4% in July, driven by higher inflation in clothing and footwear and personal care products. Food inflation rose to 2.3% in August, from 2.2% in July, mainly because of increased food services inflation, despite a moderate moderation in non-cooked food inflation.

Electricity and gas prices remained flat at 8.7% as electricity prices experienced a similar increase in August as in July. The Monetary Authority of Singapore and the Ministry of Trade and Industry attributed this to elevated global energy prices leading to increased electricity and gas tariffs and higher transportation fares. They also noted that high and volatile global oil prices, along with adverse weather conditions expected to reduce agricultural yields, could raise Singapore's imported food prices.

With higher input costs passing through global supply chains, a wider range of Singapore's imported goods and services may see price increases in the coming quarters. Accommodation inflation remained unchanged at 0.8%, with housing rents increasing at the same pace as in July.