Singapore's core inflation hits near two-year peak amid energy costs

Singapore's core inflation, which strips out volatile items like energy and food, climbed to 2 percent last month, outpacing the previous month's reading and reaching levels not seen since late 2022. The acceleration reflects sustained pressure on household budgets from energy-related expenses, particularly electricity and gas bills that have surged alongside global commodity price movements.

Utility costs have emerged as a primary driver of inflationary pressures across Singapore's consumer basket. As international energy markets remain elevated, utility providers have passed through higher wholesale costs to residential and commercial customers, creating noticeable upward pressure on overall price levels.

The uptick in core inflation signals that price pressures extend beyond temporary supply-chain disruptions, with underlying demand and cost factors supporting sustained increases. Policymakers are monitoring the trajectory closely as households grapple with higher living costs amid the broader economic environment.

Singapore's inflation data carries significance for the broader region, as the city-state's price movements often signal trends affecting neighbouring economies. The latest figures underscore the persistent impact of global energy dynamics on Southeast Asian consumer economies, with Malaysia and other regional economies similarly facing energy-related cost pressures affecting household budgets and overall price stability.