Business & Finance
Singapore annual inflation reaches 2.2% in July, slightly below expectations
Higher energy costs lifted consumer prices to a near two-year high despite falling 0.2% month-on-month.
The short version
- Singapore's consumer price index rose 2.2% year-on-year in July 2026, marking a near two-year high driven by energy costs linked to the Iran war.
- The inflation reading came in below the 2.3% projected by Reuters-polled economists, while core inflation reached 2.0% against a 2.2% estimate.
- Singapore recently tightened monetary policy and introduced approximately 2 billion Singapore dollars in support packages including household vouchers, cash handouts, and corporate tax rebates.
- The trajectory of future imported inflation remains key following MAS warnings of rising fuel and electronic input costs.
Key facts
- Singapore's headline consumer price index increased 2.2% year-on-year in July, up from 1.9% in June but below the 2.3% consensus among economists surveyed by Reuters.[CNBC]
- The consumer price index declined by 0.2% on a month-on-month basis in July.[CNBC]
- Core inflation, which excludes private transport and accommodation costs, rose to 2.0% in July, missing expectations of 2.2%.[CNBC]
- The Singaporean government introduced two aid packages totaling approximately 2 billion Singapore dollars, consisting of cash handouts, household consumption vouchers, and corporate tax rebates.[CNBC]
- Singapore raised its full-year 2026 economic growth forecast to a range of 4.5% to 5.5%, up from an earlier projection of 2% to 4%.[CNBC]
What remains uncertain
- The extent to which future imported inflation will rise across coming quarters remains unclear following MAS warnings of rising fuel and electronic input costs.[CNBC]