Singapore’s core consumer price index rose 2.2% year-on-year in August, climbing from 2.0% in July to mark its highest reading since September 2024.
Key Drivers Behind the Increase:
-
Broad-Based Category Gains: The uptick was primarily fueled by faster inflation across key segments:
-
Services: Rose to 2.0% (from 1.7% in July), driven largely by accelerated increases in airfares and point-to-point transport services.
-
Retail and Other Goods: Increased to 1.8% (from 1.4%), pushed up by clothing, footwear, and personal care products.
-
Food: Edged up slightly to 2.3% (from 2.2%), reflecting higher food services inflation.
-
-
Headline Inflation: Overall Consumer Price Index (CPI-All Items) inflation also ticked up to 2.3% in August from 2.2% the previous month, as higher core prices offset a slight easing in private transport inflation.
Policy Context and Outlook
The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) noted that core inflation is expected to remain elevated into next year before moderating around mid-2027, tracking anticipated shifts in global energy prices. Both core and headline inflation projections for 2026 are maintained within a range of 1.5% to 2.5%, though policymakers continue to monitor risks stemming from volatile global energy costs and imported supply chain pressures.
