Singapore's core inflation jumps to 1.2% in October, highest so far in 2025
The sharp rise in inflation was driven by higher prices in services, food and retail, as well as a smaller decline in electricity and gas prices.
Pedestrians cross a street at the Orchard Road shopping district in Singapore. (File photo: AFP/Roslan Rahman)
This audio is generated by an AI tool.
SINGAPORE: Singapore’s core inflation rose sharply to 1.2 per cent year-on-year in October, official data showed on Monday (Nov 24), up from 0.4 per cent in the month before.
The figure is the highest so far this year, driven by higher prices in services, food and retail, as well as a smaller decline in electricity and gas prices.
Core inflation had stayed below 1 per cent for several months. The last time it rose beyond that was in December 2024, when the figure came in at 1.7 per cent.
On a month-on-month basis, core prices grew by 0.5 per cent in October.
Overall inflation, as measured by the Consumer Price Index-All Items (CPI-All Items), picked up to 1.2 per cent last month, from 0.7 per cent in September, due to a larger increase in private transport prices.
On a monthly basis, overall inflation - which excludes non-consumption expenditures such as purchases of houses, shares and other financial assets and income taxes - was unchanged in October.
SECTORS
Services inflation in October rose to 1.8 per cent in October from 0.3 per cent the month before.
This was due to a faster pace of increase in health insurance costs, as well as a rise in healthcare services costs and holiday expenses, said the Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore (MAS).
Electricity and gas inflation fell less steeply than in September, because of a smaller decline in electricity prices.
Inflation for food prices increased marginally to 1.2 per cent in October, owing to a faster increase in non-cooked food prices.
Retail and other goods inflation ticked up to 0.4 per cent from 0.3 per cent the month before on account of a rise in the prices of clothing and footwear and personal effects.
Private transport inflation was higher at 3.8 per cent from 3.7 per cent in September because of a steeper increase in car prices, while accommodation inflation slightly declined from 0.4 per cent to 0.3 per cent due to a slower pace of increase in housing rents.
OUTLOOK
Maintaining their outlook from last month, MAS and MTI said that Singapore’s imported costs should continue to decline, albeit at a slower pace in the months ahead.
They projected global crude oil prices to fall more gradually in 2026 compared to 2025, with regional inflation picking up modestly after the weak outturns this year.
"On the domestic front, administrative factors temporarily dampening inflation are expected to continue tapering over the coming quarters," said MAS and MTI.
"Unit labour cost growth should begin to increase as productivity growth normalises, while private consumption demand is likely to remain steady."
Reflecting these factors, MAS and MTI said core inflation is projected to come in at around 0.5 per cent in 2025 before rising to 0.5 to 1.5 per cent in 2026.
CPI-All Items inflation is also expected to average 0.5 to 1 per cent in 2025 and 0.5 to 1.5 per cent in 2026.
MAS and MTI warned that the inflation outlook is subject to uncertainties, as supply shocks - including those stemming from geopolitical developments - could lift some imported costs abruptly.
“However, a sharper-than-expected weakening in global demand could keep core inflation lower for longer,” they said.
“Another significant decline in global oil prices could also temporarily tamp down the pace of price increases.”
