Singapore's core inflation hits near two-year high of 2.2% in August
Singapore's core inflation rose to 2.2 per cent year-on-year in August, the highest since September 2024, driven by higher services, retail and food inflation. Overall inflation also edged up to 2.3 per cent, with authorities expecting core and headline inflation to average 1.5 to 2.5 per cent in 20
SINGAPORE: Singapore's core inflation rose to 2.2 per cent year-on-year in August, up from 2 per cent in July, according to official data released on Wednesday (Sep 23). The figure is the highest since September 2024.
This was driven by higher inflation for services, retail and other goods and food, the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) said in a joint media release. On a month-on-month basis, core prices – which exclude accommodation and private transport – increased by 0.3 per cent in August.
Overall inflation, as measured by the Consumer Price Index-All Items, increased to 2.3 per cent in August from 2.2 per cent in July, due to higher core inflation which more than offset lower private transport inflation. On a month-on-month basis, overall inflation increased by 0.6 per cent in August.
Services inflation rose to 2 per cent in August from 1.7 per cent in July as airfares and prices of point-to-point transport services increased at a faster pace. Retail and other goods inflation increased to 1.8 per cent from 1.4 per cent, while food inflation edged up to 2.3 per cent from 2.2 per cent. Accommodation inflation was unchanged at 0.8 per cent, and electricity and gas inflation held at 8.7 per cent.
MAS and MTI noted that the regulated electricity tariff for each quarter is set based largely on average natural gas prices in the first two and a half months of the preceding quarter. “The increase in the regulated electricity tariff in the third quarter of 2026 is thus the result of the spike in global energy prices over the period of April to mid-June 2026,” they said.
Private transport inflation eased to 7.5 per cent in August from 8 per cent in July due to a smaller increase in car prices. The authorities noted that elevated global energy prices led to increases in Singapore's electricity and gas tariffs and higher transportation fares.
“Global oil prices remain high and volatile, while adverse weather conditions are expected to lower agricultural yields and raise Singapore's imported food prices,” said MAS and MTI. Core inflation and overall inflation are expected to average 1.5 per cent to 2.5 per cent in 2026, in line with MAS' full-year forecast range. Core inflation is expected to remain elevated into 2027 before moderating from around mid-2027.
