SINGAPORE PRICES JUMP 2.2%, HIGHEST IN NEARLY TWO YEARS

🔴 Singapore inflation hit 2.2% in July, the highest in nearly two years.

It still came in soft. Economists polled by Reuters had expected 2.3%. June was 1.9%. On a month-to-month basis prices actually fell 0.2%.

CNBC reports the acceleration was driven by higher energy prices tied to the Iran war, which lifted electricity costs for households.

Core inflation, which strips out private transport and accommodation, rose to 2% against a 2.2% forecast.

The backdrop matters. The Monetary Authority of Singapore tightened policy in a surprise move in July, warning that imported inflation was likely to climb in coming quarters on higher fuel and electronic input costs.

The government has been cushioning the hit. Two support packages worth about 2 billion Singapore dollars have gone out, covering cash handouts, consumption vouchers for households and tax rebates for companies.

And the growth picture got a lot louder. Singapore sharply upgraded its full-year 2026 GDP forecast to 4.5% to 5.5%, more than double the low end of the previous 2% to 4% range.

So the city-state is running hotter prices and a hotter economy at the same time.

Would you rather live with 2.2% inflation or slower growth?

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