Singapore’s core inflation eased to 2% in September as services and retail and other goods inflation slowed, while officials warned a sharp, sustained global energy or food price surge could lift import costs above projections.
The Monetary Authority of Singapore (MAS) and the Ministry of Energy, Trade and Industry said in a joint release Oct. 23 that core prices rose 0.1% from August. MAS excludes accommodation and private transport from its core measure because administrative supply policies can substantially affect those prices and their movements can be volatile.
All-items inflation was 2.2% year over year, down from 2.3% in August, though prices in that measure rose 0.2% month over month. Services inflation slowed to 1.7% from 2.0%, with transport service costs rising less and telecommunications prices falling more. Retail and other goods inflation eased to 1.2% from 1.8%; furniture prices declined and clothing prices rose more slowly. Private transport inflation fell to 7.1% from 7.5% as car prices increased at a slower pace.
The slowdown did not extend to every category. Food inflation rose to 2.4% from 2.3%, accommodation inflation edged up to 0.9% from 0.8%, and electricity and gas inflation held at 8.7%. The agencies said the third-quarter 2026 regulated electricity tariff increase reflected a global energy price spike from April to mid-June 2026.
The agencies expect energy commodity prices to remain high in the near term. They also cited input costs and adverse weather as factors that may raise global and regional food prices. A sharp, sustained surge in either market, they warned, could push Singapore’s import costs above projections.
They expect import-related inflation to ease in 2027 as temporary supply disruptions subside, with core inflation slowing more clearly from mid-2027. The forecast puts average core inflation at 1.5% to 2.0% in 2026 and 1.5% to 2.5% in 2027. All-items inflation is projected at about 2.0% in 2026 and 1.5% to 2.5% in 2027. The release expects domestic price pressure to remain subdued, citing contained services-sector unit labor costs and government subsidies.
On Oct. 14, MAS kept the Singapore dollar policy band’s rate of appreciation, width and central level unchanged. It said the band would allow the currency to strengthen against expected near-term imported inflation. MAS’s advance release calendar lists Nov. 23 as the expected date for October consumer price data, subject to change.
