Singapore inflation hits highest in nearly two years, but undershoots expectations
Singapore's inflation rate rose to 2.2% in July, missing economist expectations despite being a two-year high. The government cited global energy prices and the Iran war as primary drivers for the increase in electricity and transportation costs.
Why it matters
The data provides insight into how global geopolitical conflicts and energy volatility are impacting the economic stability of major Asian financial hubs.
Singapore inflation missed estimates even as it accelerated to a near two-year high in July, as higher energy prices due to the Iran war lifted electricity prices.
The city-state reported that consumer prices last month rose 2.2%, year on year, compared with the 2.3% expected by economists polled by Reuters, and the 1.9% rise seen in June.
The consumer price index fell 0.2% on a month-on-month basis. Elevated global energy prices have led to a rise in Singapore's electricity and gas charges, as well as higher transportation fares, according to a joint release by the Monetary Authority of Singapore and the Ministry of Trade and Industry.
"Global oil prices remain high and volatile while adverse weather conditions are expected to lower agricultural yields and raise Singapore's imported food prices," the statement said, adding that prices of more imported goods and services are expected to climb moving forward.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in