Singapore witnessed an overall inflation rise of 2.2% year-on-year in August, a slight increase from July’s 2.4%, as per data released by the Department of Statistics on Monday. This uptick illustrates a significant cooling trend in inflation across the city-state, which had reached a peak of 5.5% in early 2023 before decreasing to below 3% in June.
The Monetary Authority of Singapore (MAS) reported a core inflation rate of 2.7% year-on-year, specifically excluding accommodation and private transport costs. Key contributors to rising prices were food prices, which surged by 2.7% compared to the previous year, demonstrating a steady month-on-month increase of 0.2%.
Notably, fresh vegetable prices skyrocketed by 3.3% annually, while non-alcoholic beverages recorded a 1.9% increase. In contrast, clothing and footwear prices experienced a decline of 2.6%. Accommodation costs rose by 2.9%, indicating robust demand for rental properties, whereas healthcare expenses saw a year-on-year increase of 3.7%, reflecting a slight month-on-month rise of 0.3%.
While costs associated with private transport fell by 1.0%, public transport fares surged by 6.9%, highlighting a shift in consumer behavior and preferences. The Monetary Authority of Singapore has maintained its policy stance since implementing tightening measures back in October 2022, with the next review set for the upcoming month. On the economic front, the trade ministry has revised its GDP growth forecast for 2024 to a range of 2.0% to 3.0%, a notable increase from the previous estimate of 1.0% to 3%, fueled by stronger-than-expected economic growth observations in the second quarter.
Additionally, economists surveyed by the central bank have raised their growth expectations for Singapore to 2.6% for the current year, up from earlier forecasts of 2.4%..