World's second richest country posts rise in core inflation to 2.2% in August
Core inflation in Singapore rose to 2.2% in August from 2% in the previous month, driven by increases in services, retail and food prices.
Singapore, the world's second-richest country by GDP per capita in 2025, saw a rise in core inflation to 2.2% in August, according to data released by the Singapore Department of Statistics. This increase in core inflation offset the decline in private transport inflation, which fell from 8% in July to 7.5% in August due to slower car price increases.
Services inflation rose from 1.7% to 2%, primarily driven by higher airfares and transportation services. Retail and other goods experienced a 1.4% to 1.8% rise, reflecting increased prices in clothing, footwear, and personal care products. Food prices climbed 2.3% year-on-year, mainly due to faster increases in catering services, though unprocessed food inflation decreased slightly.
Electricity and gas inflation remained stubbornly high at 8.7%, unchanged from the previous month, as high global energy prices drove up costs in Singapore. Housing costs also stayed steady at 0.8%. The Monetary Authority of Singapore and the Ministry of Trade and Industry attributed the inflation surge to high global energy prices, volatile oil prices, and unfavorable weather conditions potentially reducing agricultural output and boosting imported food prices.
They warned that rising input costs would likely spread through global supply chains, causing further inflation pressure in upcoming quarters.
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