Singapore’s Core Inflation Holds Steady at 0.6% in June, Surpassing Expectations
Singapore’s core inflation remained unchanged at 0.6% in June, as rising retail prices were offset by declines across most other categories, according to data released by the Department of Statistics (Singstat) on Wednesday (July 23). The figure came in below economists’ median forecast of 0.7%, based on a Bloomberg survey.
DBS economist Chua Han Teng anticipates that the Monetary Authority of Singapore (MAS) will take a “wait and see” stance at its upcoming monetary policy meeting on July 30, keeping the option open for a third policy easing in October. MAS previously adjusted the Singapore dollar nominal effective exchange rate policy band slope in January and April.
Headline inflation also held steady at 0.8% compared to May, falling short of the median estimate of 0.9%. On a month-on-month basis, both core and headline inflation dropped by 0.1%.
MAS and the Ministry of Trade and Industry reiterated their core inflation forecast of 0.5% to 1.5% for the full year 2025.
Consumer Price Index Breakdown
In June, most components of the consumer price index (CPI) experienced price moderation, with the exception of private transport and retail goods.
Electricity and gas prices declined further by 3.9%, following a 3.7% drop in May, driven by a sharper fall in electricity rates. Food inflation eased slightly to 1% from 1.1%, as both food service and non-cooked food prices rose more slowly.
Accommodation inflation dipped to 1%, down from 1.1%, due to a more modest increase in housing rents. Services inflation saw the largest drop, falling to 0.7% from 1.1%, largely because of lower holiday expenses, airfare prices, and communication service costs.
Meanwhile, retail and other goods prices remained flat year-on-year, improving from a 1% decline in May. Private transport costs rose to 2%, up from 1.1%, owing to a sharper increase in car prices and a slower decrease in fuel prices.
Household Impact
Singstat also reported that the headline CPI for general households rose 0.9% year-on-year in the first half of 2025, down from a 1.8% rise in the latter half of 2024.
By income group, headline inflation was recorded at 0.8% for both the lowest 20% and middle 60% income groups, and at 1.2% for the highest 20%—all lower than their respective rates from the previous half-year period.
