Singapore's core inflation rose to 2 percent year-on-year in July, up from 1.6 percent in June, reflecting higher prices in electricity, gas, services, and food amid ongoing global cost pressures, according to the Monetary Authority of Singapore and Ministry of Trade and Industry.
- Core inflation reached 2% in July, mainly from energy, food, and services.
- Electricity and gas inflation sharply rose to 8.7% after a prior decline.
- Inflation expected to stay elevated through early 2027 amid global uncertainties.
What happened
In July 2026, Singapore’s core inflation—the measure excluding accommodation and private transport—rose to 2 percent year-on-year, up from 1.6 percent in June. This increase was driven by higher prices in electricity and gas, which jumped to 8.7 percent inflation after a decline the previous month, alongside rising costs in food services, non-cooked food, and transportation services.
Overall inflation, including accommodation costs, increased to 2.2 percent, as rent and maintenance fees saw larger hikes. Despite these increases, the figures remained slightly below some forecasts. Month-on-month, overall prices saw a minor dip, reflecting some moderation in non-energy related areas.
Why it feels good
Although rising inflation can be challenging, the steady but moderate pace in core inflation allows consumers and businesses to plan ahead without sudden shocks. Government subsidies and sustained productivity growth in the services sector help temper the inflationary impact, particularly in services where wage growth remains moderate.
The authorities’ clear communication about inflation trends and expected outcomes helps maintain confidence that inflation will not spiral uncontrollably. Consumers can take comfort knowing that inflation is projected to average between 1.5 and 2.5 percent for the full year and is expected to moderate by mid-2027 as global energy prices ease.
What to enjoy or watch next
Keep an eye on global energy markets and weather developments, as these major factors will influence Singapore’s inflation path. Any new disruptions in energy supplies or adverse weather impacting food production could push prices higher than anticipated, affecting daily living costs.
Meanwhile, upcoming economic data regarding wage growth, investment trends—especially in technology sectors—and government policies on subsidies will be instrumental in shaping inflation trends. Watching how businesses and consumers adapt to these cost changes can offer insights into economic resilience and opportunities for saving.