Singapore Core Inflation Accelerates to 2% in July on Rising Utilities

Singapore core consumer inflation accelerated to 2 per cent in July, driven by higher utility bills alongside rising food and service costs.

The figure climbed from 1.6 per cent in June, logging the highest reading since October 2024, according to figures released by the Department of Statistics. Even with the pickup, the print remained below the 2.2 per cent median estimate projected in a Bloomberg survey of economists.

Surging energy and food expenses

Utility bills served as the primary catalyst for the monthly increase. Electricity and gas costs surged 8.7 per cent year on year in July, reversing a 2.9 per cent contraction recorded previously.

Headline inflation, which includes accommodation and private transport alongside underlying consumer goods, climbed to 2.2 per cent from 1.9 per cent in June. Rising housing expenditures contributed to that broader increase alongside the pickup in core categories.

Margin pressures for local operators

For retail tenants, food outlets, and service providers across the island, sharper utility swings immediately feed into commercial overheads. Higher operating power expenses arrive just as consumer baskets adjust to persistent service inflation, testing pricing flexibility across dining and discretionary retail.

Market attention now turns to upcoming third-quarter monetary policy reviews, with operators watching whether central bank settings adjust to keep import costs and service inflation anchored.