Singapore's core inflation rate rises to 2.2% in August, above forecast

Singapore's core inflation rate surged to 2.2% in August, outpacing forecasts and reaching its highest level in nearly two years, according to official data released on Wednesday. The core inflation rate, which excludes private road transport and accommodation costs, exceeded both the median forecast of 2.1% in a Reuters poll and July's reading of 2.0%.

This marked the highest rate since September 2024, when core inflation reached 2.8%. Headline inflation also stood at 2.3% in annual terms for August, matching the poll forecast.

The central bank had previously indicated that inflation had started to pick up from July and was expected to remain elevated throughout the first half of the next year. In response to these higher inflation expectations, the central bank tightened monetary policy in late July, citing risks from elevated energy prices. Singapore's April core inflation had already risen to 3.3%, marking the fastest pace in a decade.

In addition to the inflation data, the trade ministry raised its growth forecast for 2026, projecting it to range between 4.5% and 5.5%, up from the previous estimate of 2.0% to 4.0%.