August 24, 2022: -Singapore’s key consumer price meter in July grew again at its fastest pace in more than 13 years, official data showed, mounting pressure on the central bank to consider one more policy tightening move later this year.

The pick-up in inflation was driven by more substantial growth in food prices, electricity and gas prices, the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry stated.

The core inflation rate, the central bank’s favored price measure – rose to 4.8% in July. A Reuters economists poll had forecast a 4.7% surge.

In June, the core and headline inflation rates were 4.4% and 6.7%, respectively.

Following July’s inflation data, three economists added that they expect MAS to tighten monetary policy in their scheduled statement in October but said that the likelihood of another off-cycle tightening before then is decreased.

The central bank of Singapore has tightened its monetary policy three times this year, twice in moves in January and July.

It typically says two scheduled monetary policy statements a year, in April and October.

“My baseline case is for one more tightening at the scheduled October statement as inflation has not peaked and shown signs of stabilization,” Selena Ling, head of treasury research and strategy at OCBC, said.

This year’s MAS’ core inflation forecast is between 3% and 4%, while headline inflation is expected to come between 5% and 6%.