Singapore July core inflation may climb to 22-month high

Singapore's core inflation rate in July probably rose to its highest in almost two years, a Reuters poll showed on Thursday, reflecting wage cost pressures from a tight labour market. -- PHOTO: ST FILE 
Singapore's core inflation rate in July probably rose to its highest in almost two years, a Reuters poll showed on Thursday, reflecting wage cost pressures from a tight labour market. -- PHOTO: ST FILE 

SINGAPORE (Reuters) - Singapore's core inflation rate in July probably rose to its highest in almost two years, a Reuters poll showed on Thursday, reflecting wage cost pressures from a tight labour market.

The Monetary Authority of Singapore's (MAS) core inflation measure likely accelerated to 2.4 per cent in July from a year earlier from 2.1 per cent in June, according to the the median forecast in a Reuters survey.

That would be the highest year-on-year reading for core inflation since September 2012, when the core inflation measure was a similar 2.4 per cent.

Such a result, however, would still be well within the central bank's forecast for core inflation of 2-3 per cent in 2014.

The MAS core inflation measure excludes changes in the price of cars and accommodation, which are influenced more by government policies.

The poll of 10 economists also showed that the headline, all-items consumer price index (CPI) in July probably rose 2.1 per cent from a year earlier. In June, CPI rose 1.8 per cent year-on-year, the lowest increase in three months.