Singapore Core Inflation Accelerates to 1.6% As Oil Risks Linger

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessSingapore Core Inflation Accelerates to 1.6% As Oil Risks LingerSingapore’s core inflation accelerated last month as higher global energy costs are beginning to filter through to consumer prices.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Singapore’s core inflation accelerated last month as higher global energy costs are beginning to filter through to consumer prices.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountCore inflation, which excludes housing and private transportation costs, rose to 1.6% in June from a year earlier, according to a statement by the Singapore Department of Statistics on Wednesday. That was faster than the 1.4% pace in May but below the median estimate in a Bloomberg News survey of 1.7%.The all-items inflation rate came in at 1.9%, compared to the 2% survey median estimate.Food inflation accelerated to 2.1% last month, while larger increases in airfare and holiday expenses pushed services inflation to 1.5%. Transport inflation was up at 7.5%. Electricity and gas prices fell at a slower pace.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“Global energy prices remain elevated relative to their levels in 2025,” the Monetary Authority of Singapore and the Ministry of Trade and Industry said in a statement.“As higher energy costs pass through global supply chains with a lag, they are expected to raise production and transport costs for a wider range of Singapore’s imported goods and services over time.”The stronger reading suggests recent spikes in global energy prices and transport costs are starting to feed through, potentially adding pressure on the MAS to further tighten policy at its Monday meeting. The MAS in April tightened its settings and projected the city-state’s core inflation at 1.5%-2.5% this year, up from the previous range of 1%-2%, as higher prices could erode real incomes and crimp demand over the next few quarters.The MAS and MTI reiterated that there are upside risks to the inflation outlook if a slower-than-expected resumption in energy shipments raises input costs for Singapore. But tighter global financial conditions and a slowdown in economic activity could also dampen price pressures.Earlier this week, Singapore’s representatives at the International Monetary Fund said core inflation is expected to average 2.5% in the second half of the year. Price pressures could build as households began paying a record 17% increase in electricity rates in the third quarter, as utilities passed on higher fuel costs.The global backdrop remains fluid. Energy prices in June had retreated from the highs seen earlier in the Iran war, but Brent oil prices recently rebounded above $90 per barrel this month as tensions reignited.Singapore’s economy has remained resilient through the conflict, expanding 5.7% in the second quarter from a year earlier, beating the 5.5% estimate in a Bloomberg News survey on global demand for artificial intelligence-related electronics.—With assistance from Srinidhi Ragavendran.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.