Singapore Core Inflation Quickens to 1.6% as Energy Costs Reach Consumers

Singapore's core inflation accelerated in June as higher global energy costs started to feed through to consumer prices. The measure, which excludes accommodation and private transport, rose 1.6% from a year earlier, up from 1.4% in May but slightly below the 1.7% median estimate in a survey of economists, according to the Department of Statistics. Headline inflation came in at 1.9%. Both readings remain within the Monetary Authority of Singapore's forecast range of 1.5% to 2.5% for 2026. The data arrive ahead of a scheduled monetary policy review on July 27, where most economists expect the central bank to keep its settings unchanged. Twelve of sixteen analysts in a Reuters poll anticipate a hold on the Singapore dollar nominal effective exchange rate policy band, with four expecting further tightening. MAS tightened in April by slightly steepening the slope of the band in response to higher projected imported cost pressures. Economists noted that a stronger than forecast second-quarter GDP reading strengthens the tightening case, but described the pass-through from energy costs as milder than feared, suggesting a more severe and sustained oil shock would be needed to prompt action.