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Singapore all-items CPI increase by 7.5% y-o-y in August; MAS Core Inflation up by 5.1% y-o-y

Felicia Tan
Felicia Tan9/23/2022 01:08 PM GMT+08  • 2 min read
Singapore all-items CPI increase by 7.5% y-o-y in August; MAS Core Inflation up by 5.1% y-o-y
MAS and MTI have kept their full-year estimates unchanged. Photo: Bloomberg
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Singapore’s core and headline inflation are continuing their growth trajectory in the month of August with all-items CPI up by 7.5% y-o-y, according to figures released by the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) on Sept 23.

During the month, MAS Core inflation, which excludes private transport and accommodation, and is MAS’s preferred gauge, rose to 5.1% y-o-y.

Headline inflation rose due to the higher private transport inflation while the rise in core inflation was driven by larger increases in food and services prices.

In its outlook statement, MAS and MTI say they see global inflation as likely to remain elevated in the near term on the back of supply constraints from key commodity markets. Tight labour markets in major economies are also contributors to the elevated figures.

In Singapore, the labour market remains tight, leading to strong wage growth. This, in turn, may see businesses passing on increases in labour costs as well as the higher fuel and utilities prices and other imported inputs to consumer prices.

To this end, MAS Core Inflation is projected to stay elevated over the next few months, while the increase in costs for cars and accommodation are likely to remain firm for the rest of the year.

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MAS and MTI have kept their CPI-All Items inflation range at 5.0%-6.0% while MAS Core inflation is projected to average between 3.0%-4.0%.

Fresh shocks to global commodity prices as well as domestic wage pressures remain as upside risks to inflation, say MAS and MTI in their statement dated Sept 23.

All segments rose as prices registered steeper increases with the exception of electricity & gas, which edged down due to a smaller increase in gas prices.

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