On Monday, Singapore reported an inflation rate of 1.8% for April, which was below the 2% forecast by economists surveyed by Reuters. Core inflation, excluding private transport and accommodation costs, was recorded at 1.4%.
Additionally, the Ministry of Trade and Industry revised the country's first-quarter GDP growth to 6%, a notable increase from the previously estimated 4.6% and surpassing the 5.1% expected by analysts. Looking ahead, the ministry projected full-year growth for 2026 to be between 2% and 4%, amid anticipated energy-related disruptions in the Strait of Hormuz due to the ongoing Iran conflict.
In response to inflation concerns, the Monetary Authority of Singapore (MAS) had tightened its monetary policy for the first time in over three years in April, although it does not utilize interest rates for policy management. Instead, the MAS guides the Singapore dollar within a policy band against a trade-weighted basket of currencies, the specifics of which are not publicly disclosed.
This economic data suggests that while Singapore's economy is currently performing well, it may face challenges from rising energy costs in the near future