Singapore (VNA) – Singapore's core inflation rose to 2.2% in August, amid increases in services, retail, and food prices, while the government warned that high energy prices and rising input costs could continue to put pressure on import prices in the coming quarters.
Data released by Singapore's Department of Statistics (SingStat) on September 23 showed that core inflation, which excludes private transport and accommodation costs, increased from 2% in July to 2.2% in August.
Overall inflation also rose from 2.2% to 2.3% during the same period. The increase in core inflation offset the impact of a decline in private transport inflation. Specifically, private transport inflation fell from 8% in July to 7.5% in August due to slower increases in car prices.
Meanwhile, services inflation rose from 1.7% to 2%, primarily driven by faster increases in airfares and end-to-end transportation services. Inflation in retail and other goods increased from 1.4% to 1.8%, reflecting higher price increases in clothing, footwear, and personal care products.
Food prices rose 2.3% year-on-year, up from 2.2% in July, mainly due to faster increases in catering services, although inflation in unprocessed food decreased. Notably, electricity and gas inflation remained high at 8.7%, unchanged from the previous month. Housing costs inflation remained at 0.8%.
In a joint statement on September 23, the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) said that high global energy prices had driven up electricity, gas, and transport costs in Singapore. MAS and MTI warned that world oil prices remained high and volatile, while unfavourable weather conditions could reduce agricultural output and push up the prices of imported food in Singapore.
According to the two agencies, as higher input costs continue to spread through global supply chains, the prices of many goods and services imported by Singapore are projected to rise in the coming quarters, adding further pressure on domestic inflation./.
