Higher food and retail costs lift core inflation as authorities maintain cautious outlook.

Singapore’s core inflation rose slightly in June, driven by higher prices for food and retail goods, while authorities said overall inflation remains broadly contained despite ongoing global economic uncertainties.

Core Inflation Ticks Up in June
Singapore’s core inflation, which excludes private transport and accommodation costs, increased to 0.8% year on year in June, up from 0.6% in May, according to the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI). The modest increase was mainly attributed to higher inflation in food, retail, and other goods and services.

Headline Inflation Remains Stable
Overall inflation, also known as a headline inflation, remained unchanged at 0.8% in June. While food prices and some consumer goods became more expensive, the increase was partly offset by lower inflation for electricity, gas, accommodation, and private transport. Authorities noted that price pressures remain relatively subdued compared with previous years.

Authorities Expect Inflation to Stay Moderate
MAS and MTI said Singapore’s imported inflation should remain contained as global commodity prices and supply chain conditions continue to stabilize. However, policymakers cautioned that geopolitical tensions, trade disruptions, and volatile energy markets could still pose upside risks to inflation in the coming months.

Forecast for 2026 Remains Unchanged
The government maintained its inflation forecast for 2026, projecting core inflation to average between 0.5% and 1.5%, while overall headline inflation is expected to average between 1.5% and 2.5%. Officials believe domestic cost pressures will remain manageable, supported by a stable labor market and easing global inflation.

Consumers and Businesses Continue to Monitor Prices
Although inflation remains relatively low, households and businesses continue to closely watch the cost of everyday essentials. Economists say Singapore’s moderate inflation outlook provides policymakers with greater flexibility while allowing businesses to plan investments and consumers to better manage household spending.

Singapore’s latest inflation figures suggest that price pressures remain under control despite a slight increase in core inflation. For Singaporeans, the stable outlook offers reassurance that living costs are not rising as sharply as in previous years. For Indonesians, Singapore’s inflation trends provide an important indicator of regional economic conditions and consumer demand in one of Southeast Asia’s leading economies.

Sources: Straits Times (2026) , CNA (2026)

Keywords: Singapore Core Inflation, June Inflation Singapore, MAS Inflation, MTI Economy, Consumer Price Index, Singapore Economy