Singapore's core inflation eased to 2.0% year-on-year in July, down from 2.2% in June and below the 2.2% median forecast in a Reuters poll.
The consumer price index excluding private road transport and accommodation costs—a key measure for the central bank—registered the slowest pace since February. Headline inflation also moderated to 2.2% annually, below the 2.3% estimate in the same survey.
The Ministry of Trade and Industry separately reported that Singapore's economy expanded 5.9% in the second quarter compared with a year earlier, exceeding expectations and prompting an upward revision to the full-year growth outlook to 4.5%-5.5% from a prior range of 2.0%-4.0%.
The central bank had warned in its July policy review that inflation risks remained tilted to the upside, citing persistent upward pressure from energy costs tied to geopolitical tensions in the Middle East. In response, policymakers unexpectedly tightened monetary settings late last month to counter inflationary pressures.
The Monetary Authority of Singapore has maintained a tightening bias, projecting that price pressures will rise further starting in July and remain elevated through the first half of 2025.
