Singapore core inflation accelerated to 1.6% in June, below forecasts; higher food and services prices drove gain as oil risks lingered

Singapore's core inflation accelerated to 1.6% in June, up from 1.4% in May, driven by rising food inflation at 2.1% and services inflation at 1.5%. This increase was below the 1.7% forecast by economists, as overall inflation reached 1.9%, missing the 2.0% estimate.¹²⁵⁶⁷⁸

The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) noted that food prices rose due to higher costs in both non-cooked food and food services. Services inflation increased due to larger airfares and holiday expenses. Accommodation inflation also edged up to 0.6% from 0.5% in May, reflecting rising housing rents.³

Despite the uptick in core inflation, the authorities warned that inflation risks remain skewed to the upside. A slower-than-expected resumption of global energy supplies could further increase import costs for Singapore. MAS and MTI maintained their inflation forecast for 2026 at 1.5% to 2.5%.

“A stronger-than-expected tightening in global financial conditions could lead to a slowdown in economic activity and thus lower inflation,” the authorities stated. Core inflation is expected to reflect ongoing pressures from elevated global energy prices, which are anticipated to raise production and transport costs for imported goods and services over time.

Overall, the inflation outlook remains complex, with both upward and downward risks influencing future trends.