DBS forecasts Singapore’s core and headline inflation at 2.3% and 2.4% year-on-year in July, up from June’s 1.6% and 1.9%.
Singapore’s headline and core inflation are projected to climb to 2.4% and 2.3% year-on-year in July, respectively, driven by higher energy and food prices. Electricity tariffs surged 17% in the third quarter, reflecting delayed pass-through of global energy costs, while food prices firmed further.
The increase follows June’s prints of 1.9% for headline and 1.6% for core inflation. The pickup aligns with the central bank’s recent decision to slightly accelerate the appreciation pace of its currency policy band, signaling vigilance on inflation risks amid Middle East disruptions.
Industrial production growth is also expected to accelerate to 9.0% year-on-year in July, up from 7.2% in June, led by electronics and precision engineering clusters. Strong global demand for AI-related hardware underpins the expansion, though factory performance remains uneven due to cost pressures and supply disruptions.