Singapore core inflation eases to 2% in September on lower services and retail prices
Singapore's core inflation fell to 2 per cent year-on-year in September, down from 2.2 per cent in August, driven by slower rises in services, retail and private transport costs. The Monetary Authority of Singapore and Ministry of Energy, Trade and Industry expect inflation to ease more clearly from
Singapore's core inflation eased to 2 per cent year-on-year in September, down from 2.2 per cent in August, according to official figures released on Friday (Oct 23). The moderation was due to lower inflation in services, retail and other goods, and private transport, the Monetary Authority of Singapore (MAS) and Ministry of Energy, Trade and Industry (METI) said in a joint media release. Core prices, which exclude accommodation and private transport, rose by 0.1 per cent month-on-month in September.
Overall inflation, as measured by the Consumer Price Index-All Items, fell to 2.2 per cent year-on-year in September from 2.3 per cent in August. On a month-on-month basis, overall inflation rose by 0.2 per cent in September.
Services inflation eased to 1.7 per cent in September from 2 per cent in August, driven by a smaller increase in point-to-point transport service costs and a larger decline in telecommunication service prices. Retail and other goods inflation moderated to 1.2 per cent from 1.8 per cent as furniture prices declined and clothing prices rose at a slower pace. Private transport inflation fell to 7.1 per cent from 7.5 per cent due to a more gradual increase in car prices.
Electricity and gas inflation was unchanged at 8.7 per cent, with the regulated electricity tariff for each quarter set largely based on average natural gas prices in the first two and a half months of the preceding quarter. Accommodation inflation edged up to 0.9 per cent from 0.8 per cent, as housing rents increased at a faster pace. Food inflation rose to 2.4 per cent from 2.3 per cent due to higher inflation in both non-cooked food and food services.
MAS and METI said imported cost pressures are expected to remain firm in the near term, with energy commodity prices rising anew and global and regional food prices expected to pick up. However, imported inflation should ease over 2027 as temporary supply disruptions fade. On the domestic front, price pressures are likely to stay subdued, with unit labour costs in the services sector contained amid continued productivity gains and enhanced government subsidies for healthcare and education.
Core inflation is expected to average 1.5 per cent to 2 per cent in 2026 and 1.5 per cent to 2.5 per cent in 2027. Overall inflation is expected at around 2 per cent in 2026 and 1.5 per cent to 2.5 per cent in 2027. The authorities cautioned that a sharp and sustained surge in global energy or food prices could lift import costs by more than projected, and domestic inflation could stay elevated if spillovers from the artificial intelligence-related boom broaden unit labour costs.
