Arabic version: تضخم سنغافورة يبلغ أعلى مستوى له في نحو عامين

According to Cnbc, Singapore’s headline inflation rose 2.2% year on year in July, its highest level in nearly two years. The reading accelerated from 1.9% in June but came in below the 2.3% forecast from economists polled by Reuters. The consumer price index fell 0.2% from the previous month.

Core inflation, which excludes private transport and accommodation, increased to 2% in July. That was below expectations of 2.2%. Higher energy prices linked to the Iran war lifted electricity prices, while elevated global energy prices also contributed to higher electricity and gas charges and transportation fares, according to a joint release by the Monetary Authority of Singapore and the Ministry of Trade and Industry.

The joint statement said global oil prices remained high and volatile. It also said adverse weather conditions were expected to lower agricultural yields and raise Singapore’s imported food prices. Prices of more imported goods and services are expected to climb, the release said.

The Monetary Authority of Singapore unexpectedly tightened monetary policy in July, warning that imported inflation could rise in coming quarters because of higher fuel and electronic input costs. Singapore has also introduced two support packages in response to the Iran war totaling about 2 billion Singapore dollars, including cash handouts, household consumption vouchers and tax rebates for companies. Separately, the city-state raised its full-year 2026 GDP growth forecast to 4.5% to 5.5%, from its previous 2% to 4% range.