Singapore Aug core inflation rises to 5.1% on higher services, food prices

SINGAPORE (ICIS)–Singapore’s core inflation rose to 5.1% on a year-on-year basis in August, near a 14-year high, amid stronger increases in the prices of food and services, official data showed on Friday.

The country’s core inflation — which excludes accommodation and private transport costs — accelerated in August from 4.8% in July.

The country last posted higher year-on-year core inflation growth in November 2008 at 5.5%.

The country’s all-items consumer price index (CPI) in June rose to 7.5% year on year in July, up from 7.0% in June, the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) said in a joint statement.

Singapore’s core inflation is projected to stay elevated over the next few months, with car and accommodation cost increases likely to stay firm for the rest of the year, MAS and MTI said.

For the full year, all-items CPI is expected to come in at 5.0-6.0%, while core inflation is projected to average 3.0-4.0%, they said.

“Fresh shocks to global commodity prices, as well as domestic wage pressures remain as upside risks to inflation,” they added.

Singapore trimmed its 2022 GDP growth forecast to 3-4% earlier in August, from the previous estimate of 3-5%, due to the deteriorating global economic environment.