Singapore’s core inflation rose to 1.6% in June, while growth momentum and upside inflation risks may prompt MAS action.
Singapore’s June inflation data showed modest increases, with headline CPI at 1.9% year-on-year and core inflation at 1.6%. Food and services inflation firmed, but overall price pressures remained contained.
The Monetary Authority of Singapore is expected to maintain its current policy settings in July while retaining a tightening bias. Strong economic growth and upside inflation risks could lead to a pre-emptive tightening move next week.
Regardless of whether MAS opts for a hawkish hold or a modest tightening, its restrictive policy stance is likely to support the Singapore Dollar’s resilience against the US Dollar.