Singapore Core Inflation Falls Below Forecasts July

Singapore's inflation rates for July indicated a cooling trend, with core inflation rising 0.5% year-on-year, below economists' expectations of 0.6%, and headline inflation increasing 0.6%, also lower than the forecasted 0.7-0.75%. The deceleration was driven by falls in prices for retail goods, electricity, gas, and accommodation, signaling softer inflationary pressures than predicted. Despite this, the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) maintained their full-year inflation forecasts but highlighted uncertainties, citing potential upside risks from geopolitical shocks and downside risks from weaker growth. MAS held policy steady in July after easing earlier in the year, with the ongoing inflation slowdown possibly supporting further monetary easing in October. Core inflation remains a key focus for MAS, which targets an average core inflation rate just below 2% as consistent with price stability. Overall, the data suggest a less aggressive inflation environment in Singapore, with cautious optimism amid external economic uncertainties.