Singapore’s core inflation remains stable

Cargo ships at Singapore port. (Illustrative photo: Xinhua/VNA)

Singapore (VNA) – Singapore’s core inflation stood at 1.4% in May, unchanged from the previous month, as higher food and retail goods prices were largely offset by a decline in services inflation.

According to a joint statement released on June 23 by the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI), May’s core inflation came in below the 1.6% median forecast of analysts. Core inflation excludes the costs of accommodation and private transport and is used by the MAS to assess underlying price trends in the economy.

Meanwhile, headline inflation remained unchanged at 1.8% in May, the same level recorded in April. On a month-on-month basis, core consumer price index rose 0.7%.

MAS and MTI noted that although global energy prices have eased recently, overall price levels remain significantly higher than in 2025. They warned that elevated energy costs could gradually pass through global supply chains, raising production and transportation costs for a wide range of imported goods and services in Singapore in the period ahead.

Domestically, the pace of labour cost increases in the service sector is expected to moderate as nominal wage growth cools compared to last year. At the same time, consumers may become more cautious in their spending amid global economic uncertainty.

The two agencies maintained their 2026 forecasts for both core inflation and headline inflation at 1.5%–2.5%./.

VNA