Singapore Core Inflation Dips to 1% in January

Singapore's core inflation eased to 1.0% year-on-year in January, down from 1.2% in December, according to joint data from the Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore (MAS).

This decline was primarily attributed to a slowdown in services inflation. Overall inflation, measured by the Consumer Price Index-All Items, saw a slight increase to 1.4% in January, largely due to higher accommodation costs.

Services inflation moderated to 1.5% in January, driven by decreased airfares and lower education fees. Food inflation remained stable at 1.2%. Private transport inflation eased to 2.7%.

Authorities project that imported costs will remain contained, with global crude oil prices expected to stay below year-ago levels. Domestic unit labor cost growth is anticipated to edge higher in 2026, tempered by sustained productivity gains. Core and overall inflation are forecast to average between 1.0% and 2.0% for the year, though uncertainties persist regarding potential demand-pull pressures and supply shocks.