The central bank of Singapore tightened monetary policy unexpectedly on Thursday in a second surprise move this year. The move is designed to attack an inflation rate that was moving upward quicker than previously estimated.

The Monetary Authority of Singapore, moved the midpoint of its policy band upward, allowing its currency to appreciate relative to peers, which will counter imported cost pressures.

Singapore’s currency, the Singapore Dollar, jumped up to 0.7% versus the dollar, its biggest intra-day gain since May. As of 8:12 AM local time, it was trading at 1.3959 per dollar.

The MAS said in the statement, “There will be no change to the slope and width of the band. This policy move, building on previous tightening moves, should help slow the momentum of inflation and ensure medium-term price stability.”

The move comes after the monetary authority’s preferred core inflation measure rose to the highest level since December of 2008, with increases across multiple areas including food, services, retail goods and energy. That report followed on data showing economic activity had stagnated in Q2 relative to the previous quarter.

After seeing the key core measure it tracks increase between 3%-4% from 2.5-3.5%, the central bank increased its inflation forecast, calling for the all-items measure to increase from the earlier forecast of 4.5%-5.5% up to 5%-6%.

Singapore has worried that its import and trade-dependent economy could be affected by shocks to the commodities markets and trade price-shocks as China’s Covid lockdowns disrupt supply chains and the war in Ukraine upsets the energy markets and global economies.

The core consumer price index of the MAS, excluding private transport and accommodation, increased to 3.6%, as the central bank warned it expected it to remain elevated for several months to come.

The MAS’s next monetary policy decision is in scheduled for October.