In July, Singapore’s key core inflation rose to its highest level in over 13 years. The core inflation rate reached 4.8 % in July, surpassing experts’ expected 4.7% increase. Not to mention, headline inflation went up to 7% last month.
In a joint statement, the Monetary Authority of Singapore and the Ministry of Trade and Industry attributed the inflation hike to higher food, electricity, and gas costs.
Singapore’s central bank has tightened its monetary policy three times this year, and a similar move is expected to be seen in the central bank’s October statement.
When the central bank changed its monetary policy, it did so twice this year when they weren’t expected to issue a statement.
Even with inflation climbing, the central bank will not likely make another unexpected move.
The central bank confirmed in their statement that they expect core inflation to remain high in the coming months. They also predict that inflation will slow towards the end of 2022 and expect core inflation to average between 3% and 4%. The forecast for headline inflation is resting between 5% and 6%.