Singapore core inflation slows to 2.0% in September as services pressures ease
Key Facts
Singapore's core inflation rate fell to 2.0% year-on-year in September 2026 from 2.2% in August, according to a joint statement by the Monetary Authority of Singapore and the Ministry of Trade and Industry. The two authorities attributed the slowdown to smaller price increases for services and retail and other goods. Meanwhile, the headline consumer price index rose 2.2% from September a year earlier, according to the Singapore Department of Statistics. On a monthly basis, the headline index increased 0.2% from August. Core prices rose 0.1% over the same period, with prices continuing to increase month-on-month despite the slowdown in their annual rate of growth.
Among the components driving the slowdown in core inflation, services inflation fell to 1.7% year-on-year in September from 2.0% in August, according to the joint statement. This reflected a smaller increase in point-to-point transport services costs during the month. Telecommunications services prices also fell more sharply, helping to ease inflation in the services sector. For retail and other goods, annual price growth slowed to 1.2% from 1.8% the previous month. The statement attributed this slowdown to falling furniture prices and smaller increases in clothing prices, with both services and goods contributing to the easing in core inflation.
Outside the core index components, private transport inflation slowed to 7.1% in September from 7.5% in August, according to the joint statement. This resulted from a more gradual increase in car prices, helping to ease headline inflation. By contrast, accommodation inflation rose to 0.9% year-on-year from 0.8% the previous month. The two authorities attributed the acceleration in this component to faster increases in housing rents. Singapore's core inflation measure excludes these two categories, with the monetary authority explaining that it "excludes accommodation and private transport costs", so the impact of changes in their prices is reflected in the headline index.
Prices continued to rise in the food and energy components, though the direction of change differed between the two categories, according to the joint statement. Food inflation accelerated to 2.4% year-on-year in September from 2.3% in August. This acceleration included non-cooked food prices, which rose more quickly during the month. Food services inflation also accelerated, contributing alongside non-cooked food to the increase in the food inflation rate. Electricity and gas inflation, meanwhile, held steady at 8.7% in September, unchanged from August. The statement attributed this stability to electricity prices rising at a similar pace to the previous month.
The September reading comes after the Monetary Authority of Singapore left monetary policy unchanged at its October review. The authority said it had "maintained the prevailing rate of appreciation" of the Singapore dollar nominal effective exchange rate policy band, according to its macroeconomic review. It also left the band's width and centre unchanged, alongside maintaining its rate of appreciation. In its outlook for 2026, the authority projected core inflation would average between 1.5–2.0%. It also forecast headline inflation would average around 2.0% in the same year, according to its monetary policy statement.
For 2027, the monetary authority expects core inflation to average between 1.5–2.5%, according to its macroeconomic review. The authority identified renewed disruptions in the Middle East and associated increases in energy prices among the risks that could push inflation above expectations. It also pointed to the possibility that weather disruptions could raise food prices. These possibilities form part of the risks surrounding the price trajectory underpinning the authority's outlook for the period ahead. The government's GDP growth forecasts for the current year and next year are scheduled to be announced in November, according to the monetary policy statement.