Singapore reported on Monday that its Consumer Price Index (CPI) rose 1.8% year-on-year in April, a slower pace than market expectations, driven by moderated price increases in services and retail goods. Economists surveyed by media had previously forecast an overall inflation rate of 2%. Core inflation, which excludes private transport and accommodation costs, came in at 1.4%, below the expected 1.7%. The Monetary Authority of Singapore (MAS) indicated that imported cost pressures for the country are expected to rise gradually and broaden in the coming months. A government statement noted: "Geopolitical developments in the Middle East are pushing up energy and other production input costs. These costs will be transmitted through global supply chains, subsequently increasing the production and transportation costs for various imported goods and services in Singapore." The MAS forecasts that both overall and core inflation for the full year 2026 will be in the range of 1.5% to 2.5%. Earlier the same day, Singapore significantly revised upward its first-quarter Gross Domestic Product (GDP) growth rate, adjusting it from a preliminary estimate of 4.6% to 6.0%, surpassing the media forecast of 5.1%. The Ministry of Trade and Industry stated that, due to disruptions in energy transport through the Strait of Hormuz, the country's full-year economic growth for 2026 is projected to remain within the range of 2% to 4%. In light of the inflation outlook, the MAS tightened monetary policy in April, marking the first such move in nearly three years. Unlike most countries, Singapore does not rely on interest rates to manage monetary policy. Instead, it utilizes the exchange rate of the Singapore dollar against a basket of trade-weighted currencies as its policy tool. The Singapore dollar's exchange rate fluctuates within a pre-determined policy band, the specific parameters of which are not publicly disclosed.