Singapore's core consumer price index, which excludes accommodation and private transport costs, rose 2.2% year-over-year in August, according to joint data released by the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) on Wednesday.

The reading, compared with the 2% pace recorded in the previous month, matched the 2.2% consensus forecast tracked by Investing.com.

The increase reflected higher inflation for services, retail and other goods, and food.

On a month-over-month basis, core prices rose 0.3%.

Meanwhile, headline inflation accelerated to 2.3% year-over-year in August from 2.2% in July, as the rise in core inflation more than offset a moderation in private transport inflation.

Services inflation rose to 2% from 1.7%, driven by faster increases in airfares and point-to-point transport services.

Inflation for retail and other goods also picked up to 1.8% from 1.4%, while food inflation rose to 2.3% from 2.2%.

MAS and MTI said elevated global energy prices have pushed up electricity and gas tariffs and transportation fares, while adverse weather conditions could raise imported food costs.

Higher input costs are also expected to feed through global supply chains and lift prices for a wider range of imported goods and services in the quarters ahead.

Both MAS Core Inflation and CPI-All Items inflation are projected to average between 1.5% and 2.5% in 2026.

Core inflation is expected to remain elevated into 2027 before moderating more noticeably from around mid-2027, alongside an expected easing in global energy prices.

The authorities said risks to the inflation outlook remain tilted to the upside, citing potential disruptions to global energy supplies, adverse weather and stronger-than-expected demand from robust information-technology investment.

They also noted downside risks from tighter global financial conditions or a pullback in AI-related investment.