Singapore's core inflation rose to 1.6% year-on-year in June 2026, reflecting higher prices for food, retail goods, and services. The increase comes amid elevated global energy prices that are set to impact electricity tariffs starting July.
- Core inflation rises to 1.6% year-on-year in June
- Food, services, and retail prices see notable increases
- Higher global energy prices to raise electricity tariffs from July
What happened
Singapore's core inflation, which excludes accommodation and private transport costs, increased from 1.4% in May to 1.6% in June 2026. This rise was largely influenced by price increases in food, retail goods, and various services, such as airfares and holiday-related expenses during the June school holidays period.
Overall inflation, which accounts for all consumer items, rose slightly from 1.8% to 1.9% year-on-year in June due to a combination of higher accommodation inflation driven by rising rents and the uptick in core inflation. Meanwhile, private transport inflation slightly eased amid smaller petrol price increases.
Why it feels good
Despite the upward movement in prices, inflation levels remain relatively moderate compared to historical highs. This manageable inflation environment supports sustained consumer confidence and spending, especially as nominal wage growth continues to ease, helping households adjust gradually.
The slower pace of inflation in some sectors, like private transport, and only modest monthly price changes provide a stable economic backdrop. Additionally, a cautious consumer approach amid economic uncertainty may temper inflation pressures further, preventing rapid cost surges.
What to enjoy or watch next
Starting July, Singaporeans can expect regulated electricity tariffs to rise due to the reflection of higher global natural gas prices from April to mid-June. The government monitors these changes closely to balance energy costs with overall inflation control.
Looking ahead, core and overall inflation are projected to average between 1.5% and 2.5% for 2026. Inflation risks remain skewed upward if global energy supply tightens further, although potential economic slowdown from tighter financial conditions could also ease price growth, making the upcoming quarters important to watch.