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Elevated global energy prices have led to increases in Singapore\u2019s electricity and gas tariffs, as well as higher transportation fares, authorities noted.<\/span><\/p>\n The persistently high and volatile global oil prices, coupled with adverse weather conditions, are also expected to lower agricultural yields and raise Singapore\u2019s imported food prices.<\/span><\/p>\n \u201cAs higher input costs pass through global supply chains, the prices of a wider range of Singapore\u2019s imported goods and services are expected to pick up in the quarters ahead,\u201d said MAS and MTI.<\/span><\/p>\n Domestic unit labour costs in the services sector, meanwhile, are likely to rise at a slower pace amid sustained productivity growth and moderating nominal wage growth, the authorities said, adding that government subsidies will also continue to dampen services inflation.<\/span><\/p>\n Taking all factors into account, core inflation and overall inflation are projected to average 1.5 per cent to 2.5 per cent for the whole of 2026, in line with <\/span>MAS\u2019 full-year forecast range<\/span>.<\/span><\/p>\n Core inflation is expected to remain elevated into 2027, before moderating more discernibly from the middle of the year, alongside an expected easing in global energy prices.<\/span><\/p>\n \u201cAt this juncture, the risks to the inflation outlook remain tilted to the upside. Renewed disruptions in global energy supplies or worse-than-expected weather conditions could raise Singapore\u2019s imported costs by more than anticipated,\u201d MAS and MTI said.<\/span><\/p>\n \u201cInflation could also be more persistent than projected if robust IT investment growth generates stronger demand spillovers globally and in Singapore.\u201d<\/span><\/p>\n \u201cHowever, downside risks remain,\u201d they said, adding that an unexpected tightening in global financial conditions or a pullback in artificial intelligence-related investment could lead to a slowdown in economic activity and, in turn, lower inflation.<\/span><\/p>\n<\/div>\n OUTLOOK Elevated global energy prices have led to increases in Singapore\u2019s electricity and gas tariffs, as well as higher transportation fares, authorities noted. The persistently…<\/p>\n","protected":false},"author":1,"featured_media":79106,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/dam.mediacorp.sg\/image\/upload\/s--4SoKc2UG--\/c_crop,h_538,w_957,x_1,y_1\/c_fill,g_auto,h_676,w_1200\/fl_relative,g_south_east,l_mediacorp:cna:watermark:2023-11:afp_watermark_14112023,w_0.1\/f_auto,q_auto\/people-orchard-road-walking.jpg?itok=Usxu2e4z","fifu_image_alt":"","footnotes":""},"categories":[2],"tags":[2555,711,108,902,1412,6200,2588,4369,7509,492,209],"class_list":["post-79105","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buzz-news-sg-global","tag-core","tag-electricity","tag-food","tag-gas","tag-higher","tag-inflation","tag-july","tag-prices","tag-rises","tag-services","tag-singapores","wpcat-2-id"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/79105","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=79105"}],"version-history":[{"count":0,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/79105\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/media\/79106"}],"wp:attachment":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=79105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=79105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=79105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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