Singapore Core Inflation Drops to 2% in September
Singapore's core inflation eased to 2% in September, driven by lower prices in services, retail, and private transport.
The Monetary Authority of Singapore and the Ministry of Energy, Trade and Industry reported that core inflation eased to 2% year-on-year in September, down from 2.2% in August. Overall inflation also declined to 2.2% from 2.3%, falling below private sector consensus estimates.
Moderating prices in retail, services, and private transport drove the decline, although inflation for accommodation and food saw slight increases. Authorities expect domestic price pressures to remain subdued, supported by government subsidies for education and healthcare alongside productivity gains.
Despite the current trend, officials warned that risks remain tilted to the upside. A sustained surge in global food or energy prices, or spillovers from the artificial intelligence boom, could increase import costs and push domestic inflation above projections. Core inflation is forecast to average between 1.5% and 2% for 2026.
