Singapore core inflation at 2.0% year-on-year in July, lower than expected

The core inflation rate, which excludes private road transport and accommodation costs, was lower than the median forecast of ⁠2.2% in a Reuters poll.

Headline inflation was 2.2% in annual terms in July, lower than the poll forecast of 2.3%.

The central bank had previously flagged that inflation is expected to pick up from July and to ‌stay ⁠elevated through the first half of next year.

Earlier this month, the trade ministry raised its growth forecast to 4.5%-5.5% this ⁠year, up from 2.0%-4.0%, after second-quarter GDP expanded 5.9% from a year earlier.

The central ⁠bank unexpectedly tightened monetary policy in late July, citing persistent inflationary risks ⁠amid elevated energy cost pressures caused by the Middle East conflict.