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DBS expects Singapore inflation to rise in July

DBS links the July inflation pickup to delayed pass-through of higher global energy costs and forecasts industrial production growth accelerating to 9.0% year on year.

Reported · Written up by our desk · Central Banks

DBS economists Taimur Baig and Radhika Rao expect Singapore’s headline inflation and core inflation to rise in July to 2.4% and 2.3% year on year, respectively, driven by higher energy and food costs, according to FXStreet.

They project the July increase will come after June’s readings of 1.9% headline and 1.6% core, pointing to delayed pass-through of global energy price pressures, reflected in a sharp 17.0% increase in electricity tariffs in the third quarter of 2026.

Alongside the inflation outlook, DBS forecasts industrial production to accelerate to 9.0% year on year in July from 7.2% in June, led by electronics and precision engineering, while noting uneven factory performance due to cost pressures and supply disruptions.

The economists also attribute part of the production strength to continued robust expansion in electronics and precision engineering clusters, supported by strong global demand for artificial intelligence related hardware.

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