Google Advertisement
Singapore, July 24, 2026 – Singapore’s core inflation ticked up in June, underscoring persistent price pressures even as overall inflation remained contained.
The latest figures suggest that while domestic costs are relatively stable, external shocks particularly in energy and shipping continue to weigh on the city state’s economic outlook.
Core inflation, which excludes private transport and accommodation costs, rose to 1.6 percent in June, up from 1.4 percent in May.
Economists had expected a slightly higher reading of 1.7 percent, but the increase still reflects firmer energy and imported goods prices.
Google Advertisement
Overall inflation climbed to 1.9 percent, driven by accommodation and food costs.
Private transport inflation eased marginally to 8.4 percent, down from 8.6 percent in May, though still elevated due to lagged effects of global oil price volatility.
Food inflation accelerated to 2.1 percent, reflecting faster increases in both non cooked food and food services.
Accommodation costs rose to 0.6 percent, as housing rents continued to edge higher.
Services inflation also picked up, reaching 1.5 percent, largely due to higher airfares and holiday related expenses.
Despite the uptick, analysts expect the Monetary Authority of Singapore (MAS) to maintain its current policy stance.
The central bank has kept a “tightening bias” in place, signaling caution but refraining from further adjustments.
Economists note that domestic price pressures remain contained, but external risks particularly disruptions in the Strait of Hormuz and Red Sea have raised freight and energy costs, posing upside risks to imported inflation.
Zavier Wong, market analyst at eToro, said June’s firmer reading “weakens the case for MAS to ease policy,” reinforcing expectations that the central bank will stay cautious.
Edward Lee, chief economist at Standard Chartered, added that while domestic inflation is manageable, “external energy shocks could reignite risks and complicate the policy outlook.”
The government has kept its 2026 inflation forecast at 1.5 to 2.5 percent, suggesting confidence that price pressures will remain within a manageable range.
Still, policymakers acknowledge the delicate balance between guarding against inflation and supporting growth in a slowing global economy.
Singapore’s inflation trajectory reflects broader regional dynamics.
Rising energy costs and supply chain disruptions have affected economies across Asia, with many central banks adopting cautious stances.
For Singapore, the challenge lies in managing imported inflation while ensuring domestic demand does not falter.
The June figures highlight the trade-offs facing policymakers.
On one hand, upside risks from energy and freight costs could push inflation higher in the months ahead.
On the other, global financial tightening and slower growth may ease demand-driven pressures, creating room for stability.
For households, the impact is most visible in food and transport costs, where price increases have been more pronounced.
While accommodation and services inflation remain moderate, the persistence of higher energy costs could filter through to broader consumer prices.
As the second half of 2026 unfolds, Singapore’s inflation outlook will hinge on global developments.
The MAS is expected to hold steady for now, but analysts caution that any escalation in energy disruptions could force policymakers to reassess.
