On August 23, a joint statement issued by the Monetary Authority of Singapore and the Ministry of Trade and Industry showed that the core inflation rate continued to climb to 4.8% in July, up from 4.4% in June, a 10-year high; overall inflation in July The rate was 7%, also up from 6.7% in June.
The pick-up in inflation was largely driven by strong increases in food, electricity and natural gas prices.
Core inflation excludes private road transport and accommodation expenses.
In addition to the rise in core inflation, private transport and accommodation inflation also rose in July.
The statement said that core inflation is expected to rise further in the coming months, before slowing down towards the end of the year.
While factors disrupting global supply chains have eased and some commodity prices have leveled off, major commodity markets continue to face supply constraints, labor markets in many major economies remain tight, and global inflation is likely to remain elevated in the near term.
As the easing of COVID-19 restrictions, the improvement in domestic demand in some regional economies may boost inflation in these economies, the statement said.
At the same time, Singapore, as an importer of resources and products, may continue to face upward pressure on import prices.
In terms of domestic factors, the labour market in Singapore continues to be tight, leading to strong wage growth.
With consumption firming, companies are likely to pass on higher costs for fuel, utilities and other imported inputs, and labor to consumers.
Cai Honda