Singapore Core Inflation Rises to 1.6 Percent in June

Singapore's core inflation rose to 1.6 percent year-on-year in June 2026, up from 1.4 percent in May. Overall inflation, measured by the Consumer Price Index-All Items, increased to 1.9 percent, marking the highest level since September 2024. The rise was driven by higher costs for food, which rose to 2.1 percent due to price hikes in fish and seafood, as well as services inflation at 1.5 percent fueled by airfares and holiday expenses.

While private transport inflation reached 8.4 percent, these increases were partially offset by price declines in education, clothing, and information and communication. The Monetary Authority of Singapore and the Ministry of Trade and Industry project that overall and core inflation will average between 1.5 percent and 2.5 percent for the full year. For the first half of 2026, headline inflation averaged 1.7 percent while core inflation averaged 1.4 percent.

Authorities warned that elevated global energy prices from April to mid-June will increase regulated electricity tariffs beginning in July. Risks to the inflation outlook remain tilted to the upside due to potential energy supply disruptions and regional supply chain shortages, though tighter global financial conditions provide a downside risk. Analysts from Moody's Analytics suggest prices will likely trend higher through the remainder of the year.