SINGAPORE: The Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore (MAS) announced on Tuesday that the MAS core inflation on a year-on-year basis rose to 4.8 per cent in July from 4.4 per cent in the previous month, reported Xinhua.
Meanwhile, the CPI-All Items inflation rose to 7 per cent year on year in July from 6.7 per cent in June.
Singapore’s MAS core inflation excludes the costs of accommodation and private transport, and CPI-All Items inflation represents the rise in the consumer price index (CPI) for all items.
According to MTI and MAS, the pickup in core inflation this July was mainly driven by increases in food inflation and electricity and gas inflation. The CPI-All Items inflation increased due to the rise in core inflation, as well as higher private transport inflation and accommodation inflation.
On a month-on-month basis, Singapore’s MAS core CPI and CPI-All Items increased by 0.6 per cent and 0.2 per cent, respectively.
The two authorities said that the core inflation is projected to stay elevated over the next few months before it begins to ease towards the end of the year. For the full year, Singapore’s CPI-All Items inflation is expected to come in at 5-6 per cent, while MAS core inflation is projected to average at 3-4 per cent.
MAS and MTI reiterated that fresh shocks to global commodity prices, as well as domestic wage pressures, remain as upside risks to inflation.-Bernama