SINGAPORE — Singapore’s core inflation eased to 0.5% year-on-year in July, down from 0.6% in June, according to a joint release from the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) on Monday. This marks the lowest level since March and also fell short of the 0.6% forecast from economists surveyed by Reuters.
The moderation in core inflation was attributed to softened prices across several categories. Retail and other goods saw a decline of 0.5% in July after holding steady in June. Electricity and gas inflation also deepened, dropping to -5.6% from -3.9%. Accommodation inflation cooled to 0.5%, down from 1.0% the previous month. Meanwhile, food inflation ticked upward to 1.1%, and private transport inflation inched higher to 2.1%
On a month-on-month basis, July’s core inflation contracted by 0.1%, excluding the volatile components of private transport and accommodation.
The broader headline inflation measure, CPI-All Items, softened to 0.6% year-on-year in July—down from 0.8%—led by lower accommodation and core inflation. Month-on-month, this broader measure declined by 0.7%.
Looking ahead, MAS and MTI maintained their full-year 2025 forecast ranges for both core and headline inflation at between 0.5% and 1.5%. They highlighted that the outlook continues to be shaped by both upside and downside risks: geopolitical shocks could drive up imported energy and shipping costs, while weaker global or domestic demand could keep inflation subdued for longer.
On the upside, expectations for imported inflation remain moderate given easing global crude oil prices and contained food commodity cost increases. Domestically, slower nominal wage growth and rising labour productivity are expected to temper unit labour costs, while enhanced government subsidies for essential services should continue to moderate services inflation.
Source: CNA
