Prices for housing and utilities (1.3%) and health (3.3%) were unchanged, while deflation in education moderated slightly (-0.7% vs -0.9%). In contrast, inflation for recreation, sport, and culture eased to 1.0% from 1.1%.

On a monthly basis, consumer prices rose 0.6% in August after a 0.2% decline in July, the strongest monthly increase since February. Core inflation, which excludes accommodation and private transport costs, climbed to 2.2% from 2.0% in July, its highest rate since September 2024.

The central bank had earlier indicated that inflation would start to pick up from July and remain elevated through the first half of next year.

New orders increased, supported by intensified marketing efforts and firmer demand in real estate, transport services, and travel bookings. Additional growth in new business was underpinned by rising client interest in software and digital solutions.

New export orders also registered solid growth, although the pace was somewhat slower than before, while employment continued to expand.

On the pricing side, both input cost inflation and output charge inflation eased. Overall, business confidence strengthened.

Manufacturers stepped up their purchasing activity, while shorter supplier delivery times contributed to a further enhancement in operating conditions. Input inventories increased at the fastest rate since February, and finished goods stocks climbed to their highest level in eleven and a half years.

On the pricing front, input cost inflation accelerated, reflecting higher expenditure on electrical components, food, fuel, metals, pharmaceutical ingredients, and technology resources. This, in turn, drove a stronger rise in factory-gate prices. Looking ahead, business confidence among manufacturers improved in September, indicating a more optimistic outlook for the sector.

New export orders continued to rise, though the pace of growth slowed to its weakest in nearly three years. This reflected softer gains among service providers, even as export growth in manufacturing edged up slightly.

Employment increased solidly, with both sectors adding staff at broadly similar rates, in line with ongoing expansions in output and new orders. Outstanding business rose slightly after having declined in each of the previous two months.

On the price front, input cost inflation eased to its lowest level since January, while output charge (selling price) inflation remained broadly unchanged. Business confidence improved in both manufacturing and services, pushing overall optimism to a four-month high.

The shift from a 0.20% decline in July to a 0.60% increase in August underscores a clear month-on-month acceleration in price pressures. Under the comparison framework, the “actual” August reading reflects price changes versus July, while the “previous” figure captures July’s movement compared with June. This swing back into positive territory suggests that July’s softness in prices was temporary, with August data pointing to a renewed upward trend in consumer inflation.

On a year-over-year basis, the August reading indicates that prices increased more quickly than in the previous month when comparing each period to the same month a year earlier. July’s 2.2% YoY rise reflected a more moderate pace of price growth, but the August figure suggests that underlying price pressures remain present in the Singapore economy.

While the change from 2.2% to 2.3% is modest, the uptick will be closely watched by market participants and policymakers assessing the trajectory of inflation and its implications for monetary and fiscal policy settings in the months ahead.

Both the current and previous readings are based on year-over-year comparisons: August’s figure reflects the change versus August a year earlier, while July’s 2.00% reading was measured against July a year earlier. The uptick suggests that, while inflation remains relatively contained, underlying cost pressures have firmed modestly heading into late 2026. Investors and policymakers are likely to monitor upcoming prints to gauge whether this move signals the start of a more persistent trend or a temporary fluctuation in core inflation dynamics.

Foreign investors sold 38.1 billion rupees ($398.6 million) of Indian equities on Tuesday, extending their selling spree to eight sessions over the past nine trading days. On the stock front, Arvind SmartSpaces rallied 10.8% after reporting bookings of over 5 billion rupees at its Bengaluru project, Arvind Sylva. Clean Max Enviro Energy advanced 2.9% after Macquarie initiated coverage with an “outperform” rating, while Bajaj Finance gained 2.1% following an upgrade by UBS to “neutral” from “sell.”

Household consumption rose by 0.8%, accelerating from a 0.5% increase in the first quarter. In contrast, government spending growth eased to 0.5% from 0.7%, and gross fixed capital formation slowed to 0.3% from 0.7%, reflecting more modest increases in business and household investment alongside weaker government investment. Both exports and imports expanded by 1.4%.

On the production side, the information and communication sector recorded the strongest growth. Year-on-year, GDP increased by 1.6% in the second quarter, revised up from a preliminary 1.3% and following a 1.4% rise in the previous quarter.

Robust export performance also supported the won. South Korea’s exports surged 78% year-on-year in the first 20 days of September, propelled by a 259% jump in semiconductor shipments, which bolstered dollar inflows. At the same time, the Asian Development Bank raised its 2026 growth forecast for South Korea to 3.2% from 2.6%, citing strong exports and solid corporate earnings driven by the AI boom.

However, the dollar remained relatively firm overall, as hawkish comments from Federal Reserve officials kept markets pricing in roughly a 54% probability of another rate hike in October.

Even so, the downside was partly limited by stronger demand prospects in top consumer India. The country’s palm oil imports in August rose 7% from July to 782,761 tonnes, the highest level since February, as refiners replenished inventories ahead of upcoming festivals. On the supply side, Indonesia, the world’s largest palm oil producer, is expected to experience a shorter-than-usual wet season starting in November, which could affect crop conditions. Meanwhile, Malaysia raised its October CPO reference price but left the export duty unchanged at 10%.

On the demand side, prices were supported by expectations that Chinese steelmakers will restock ahead of the extended Golden Week holiday in early October. However, the market remains pressured by weakening steel mill profitability in China, driven largely by elevated coking coal prices after safety inspections and mine suspensions in Shanxi tightened domestic supply. Additionally, softer demand from China’s construction and manufacturing sectors has continued to dampen ferrous metal buying.

According to the year-over-year comparison methodology, the “actual” figure reflects how GDP in the second quarter of 2026 changed versus the second quarter of 2025, while the “previous” figure showed the change in the prior period relative to its year-ago level. The uptick from 1.4% to 1.6% suggests that the Netherlands has managed to improve its growth trajectory, albeit gradually, as it moves through 2026.

On a quarter-over-quarter basis, the current 0.6% increase reflects stronger performance than the prior quarter’s 0.4% rise, which itself was measured against the quarter before it. The step-up in growth suggests a gradual firming in the Netherlands’ economic trajectory during the second quarter, although no further details on sector contributions or demand components were provided with this release.

The comparison framework underscores the sequential nature of the improvement: while the previous indicator captured the change in output from one quarter to the next, the latest reading shows that growth has gained additional pace within the same year, pointing to a slightly more robust short-term outlook for the Dutch economy.

Brent crude hovered near a two-week low of about $99.2 per barrel on expectations of a diplomatic resolution to the Middle East conflict, easing concerns over India’s energy import bill. Additionally, dollar sales by state-run banks, along with RBI activity in the spot market and through FX swaps, further helped contain rupee losses.

The central bank’s earlier policy measures have attracted roughly $133 billion via the diaspora deposit scheme, pushing foreign exchange reserves to a record high. Nonetheless, persistent foreign equity outflows remain a headwind, with overseas investors selling $1.81 billion of Indian equities in September and $25.87 billion year-to-date.

The decline in prices was tempered by tightening supply and reduced output in China. Chinese zinc production fell 1.8% year-on-year in August, its first annual drop in nearly a year and the lowest level since May 2025, reflecting smelter maintenance, mining disruptions, and negative spot treatment charges.

Output has also decreased at several major mines, including Antamina in Peru and Red Dog in Alaska, as operators process lower-grade sections of their ore bodies. At the same time, LME inventories remain historically low, with physical tightness particularly pronounced in Western markets.

In addition, an industrial accident was reported last week at Korea Zinc’s Onsan smelter. However, the company has not announced any production cuts, maintenance shutdowns, or suspensions of operations.

At the same time, declining oil prices have helped ease concerns about imported inflation and fiscal pressures, even as domestic price risks remain elevated. Annual inflation quickened to 3.19% in August, driven in part by higher food costs amid El Niño-induced supply disruptions. A strong U.S. dollar also constrained the rupiah’s advance, with the dollar index hovering near an eight-week high as hawkish signals from the Federal Reserve reinforced expectations of another rate increase later this year.

At the same time, oil prices declined for a sixth straight session after President Trump said US officials had a “very good” meeting with Iranian representatives. Tehran indicated it could reopen the Strait of Hormuz within seven days if the US reduced military pressure and lifted its blockade of Iranian ports. The continued drop in oil prices has eased some worries about renewed inflationary pressures and the risk of further rate hikes.

Elsewhere, China’s gold imports through August surpassed 1,000 tons, already exceeding the full-year total for 2025, reflecting robust investment demand.

Electronics and technology shares climbed 1.2%. Taiwan Semiconductor Manufacturing Company (TSMC)—the world’s largest contract chipmaker and a heavyweight that accounts for more than 40% of the market’s total capitalization—rose 1.2%, rebounding after a decline on Tuesday. Nanya Technology and Asia Vital Component also posted strong gains, jumping 5.0% and 4.1%, respectively.

The broader market tracked Wall Street higher after the tech-heavy Nasdaq Composite notched a record close, lifted by robust advances in AI-related stocks. Additional support came from easing oil prices and lower US Treasury yields, which improved risk appetite. Market sentiment was further bolstered by optimism surrounding the upcoming Trump–Xi summit, where investors expect AI and tariffs to be key topics of discussion.

The US-driven move in FX markets overshadowed mounting expectations of additional tightening by the Reserve Bank of New Zealand. Markets are now pricing in a 75% probability that the RBNZ will deliver a third straight rate increase, taking the cash rate to 3.0% at its October meeting, after Governor Anna Breman warned that persistently higher oil prices could push near-term inflation somewhat above the central bank’s latest projections. At the same time, her emphasis on an uneven economic recovery highlighted the difficult trade-off between containing inflation and supporting a still-fragile domestic economy.

Downside in the broader market was limited by a further decline in oil prices, which eased inflation concerns amid signs of progress in U.S.–Iran diplomatic talks. Separately, President Prabowo welcomed the government’s completion of IDR 218 trillion in bond repayments to the central bank, settling obligations that date back to the 1997–98 Asian financial crisis.

Losses were led by financial, technology, and property shares. Notable decliners included Mitra Adiperkasa (-2.7%), Indosat (-2.1%), Alamtri Resources (-1.9%), and Indo Tambangraya Megah (-1.4%).

Zelenskyy added that Kyiv is ready to consider any format for an energy truce with Moscow, but emphasized that there have been no discussions about Ukraine unilaterally halting strikes on Russian oil refineries. The ongoing Russia-Ukraine conflict has disrupted Black Sea exports, forcing importers to seek alternative suppliers.

In parallel, the US Department of Agriculture reported earlier this week that US winter wheat planting was 17% complete as of Sunday, lagging behind the five-year average of 21%.

On the demand side, consumption remains strong across power grid infrastructure, AI data centers, and the defense industry, while the recent surge in technology and AI equities has further improved the demand outlook. At the same time, traders are closely watching prospective US tariffs on copper, with the Commerce Department proposing duties of 15% from January 2027 and 30% from 2028, pending a final decision by the president.

At the same time, the storage surplus is narrowing. Late-summer heat has bolstered power-sector demand, helping to counteract strong production. Analysts estimate that inventories for the week ended September 18 were about 3% above the five-year average, down from a 3.7% surplus the previous week.

LNG exports remain robust as well. Average gas flows to the nine major US LNG export facilities have increased to 18 bcfd so far in September, up from 17.2 bcfd in August. Firm overseas demand is underpinning these exports, with buyers in Europe and Asia replenishing inventories ahead of winter amid disruptions to LNG shipments from the Persian Gulf.

Additional pressure on the yuan stemmed from muted optimism over the summit’s outcome, after preliminary talks on Sunday failed to yield an agreement to extend the tariff truce set to expire in November. Although expectations for a major breakthrough remain low, the meeting is still expected to cover a range of sensitive topics, including artificial intelligence, Iran, Taiwan, and bilateral trade relations.

Chinese President Xi Jinping and First Lady Peng Liyuan are scheduled to be received by President Trump on Wednesday evening, marking Xi’s first visit to the United States since 2015.