The measure, which excludes private transport and accommodation, rose 5.5% in January from a year earlier, the fastest pace since November 2008 according to a statement Thursday. That compares with a 5.7% median estimate in a Bloomberg survey.

The quickening pace of inflation raises the possibility of the MAS further tightening its exchange rate policy at its mid-April meeting.

Finance minister Lawrence Wong in his Feb 14 budget speech said he expected headline inflation to remain high for the first half of 2023 and announced an additional S$3 billion (US$2.2 billion) to help lower-income households cope with the higher cost of living.

Headline inflation edged up higher to 6.6%, compared with a 7.1% median forecast and 6.5% pace in December, according to a joint statement from the Monetary Authority of Singapore and the Ministry of Trade and Industry.

Prices for food items came in higher at 8.1%, the highest level since Aug. 2008, while lower increases in items like electricity and private transport helped hold back the acceleration.

Core inflation “will remain elevated in the first half of 2023 before slowing more discernibly in the second half” as the current tightness in the domestic labour market eases and global inflation moderates, according to the statement on Thursday.

Singapore reiterated its projections for 2023 headline and core inflation, expecting them to average 5.5%–6.5% and 3.5%–4.5% respectively.