Singapore’s core inflation slows to 2% in September — Channel NewsAsia
In Singapore, core inflation slowed to 2% year-on-year in September, compared with 2.2% in August. The decline was attributed to slower price growth for services, retail and other goods, as well as private transport, Channel NewsAsia reports, citing a joint statement by the Monetary Authority of Singapore and the Ministry of Energy, Trade and Industry.
Price dynamics
The core indicator excludes accommodation and private transport costs. On a monthly basis, core prices rose by 0.1% in September.
Headline inflation, measured by the consumer price index, fell to 2.2% year-on-year after 2.3% in August. It increased by 0.2% over the month.
Inflation in the services sector slowed from 2% to 1.7% due to smaller increases in transport services costs and a deeper decline in telecommunications prices. The pace of price growth for retail and other goods eased from 1.8% to 1.2%: furniture prices fell, while clothing became more expensive at a slower rate.
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Private transport inflation declined from 7.5% to 7.1% as car prices rose more slowly. At the same time, inflation for electricity and gas prices remained at 8.7%.
Forecasts and risks
Accommodation cost inflation rose from 0.8% to 0.9% due to faster growth in rental prices. Food inflation increased from 2.3% to 2.4% amid higher inflation for both unprocessed food and food services.
Authorities expect imported cost pressures to remain noticeable in the near term due to high energy prices and a possible rise in food prices. In 2027, imported inflation is expected to ease after the effects of temporary supply disruptions fade.
Core inflation in 2026 is forecast by the Monetary Authority and the ministry to average between 1.5% and 2%, and between 1.5% and 2.5% in 2027. Headline inflation is estimated at around 2% in 2026 and in the 1.5–2.5% range in 2027. A sharp and prolonged rise in global energy or food prices, which could increase the country’s import costs more than expected, was named as a risk.
