Consumer price inflation in Singapore picked up in July mainly due to higher costs of transport, housing and food, official figures showed on Monday. On a monthly basis, consumer prices rose, led by higher costs of transport, housing and clothing & footwear.
The Department of Statistics said the consumer price index rose 3.1% in July compared to a year ago, faster than the 2.7% increase in the previous month. Excluding accommodation costs, the consumer price index rose 3.8%.
Transport costs increased 10.7% in July compared to a year ago due to higher prices of cars and petrol. Housing costs rose by 2.7% as a result of higher electricity charges and accommodation costs. Food prices went up by 1.5%, due to more expensively prepared meals, vegetables, fresh seafood, meat & poultry, as well as rice & other cereals.
On a seasonally adjusted month-over-month basis, the consumer price index climbed 0.5% in July. Excluding accommodation costs, the consumer price index moved up by 0.4%.
On an unadjusted basis, consumer prices were up 1.3% in July compared to June. Housing cost increased 2.6% due to higher accommodation costs, electricity tariffs, and service charges. Transport costs increased 1.7%, reflecting higher prices of cars and car insurance premium. Prices of clothing & footwear rose by 3.2%.
Analysts said inflation in Singpore is rising mainly due to low base effects, especially with regards to the transport sector. The transport segment in Singapore is volatile, as the government strictly controls the number of vehicles on roads by raising or lowering the number of auto permits granted to limit pollution and congestion. "Such policy induced inflationary impact tends to be transient in nature and will eventually dissipate on account of its own base effect," economists at DBS Bank noted.
In the first seven months of the year, consumer prices increased 2.1% compared with the same period in 2009. Excluding accommodation costs, consumer prices rose 2.9%.
The Monetary Authority of Singapore said last month in its annual report that inflation is likely to pick up through the year due to higher transport and commodity prices. It forecast inflation to average between 2.5% and 3.5% this year, and underlying inflation to come in at around 2%.
The central bank also hinted that it is likely to keep its exchange rate policy unchanged when it holds its next policy meeting in October. In April, the MAS decided to re-center its exchange rate policy band and to shift the policy band from that of a zero percent appreciation to one of "modest and gradual" appreciation.
The MAS oversees monetary policy by controlling the exchange rate of the Singapore dollar rather than using benchmark interest rates. It meets only twice a year to review its exchange rate policy.
Singapore's economy grew 24% on a quarterly basis between April and June, following the 45.7% surge in the previous quarter. Last month, the government upgraded its growth projection for the economy this year to 13-15% from 7-9%.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.