PUBLISHED ONOctober 23, 2026 5:17 AMBYSean LerSingapore's core inflation eased to 2 per cent year-on-year in September, down from 2.2 per cent in August, data from the Ministry of Energy, Trade and Industry (METI) and the Monetary Authority of Singapore (MAS) showed.
This was because of lower inflation for services, and retail and other goods, MTI and MAS said in a joint media release on Friday (Oct 23).
On a month-on-month basis, core prices — which excludes accommodation and private transport due to their volatility and tendency to be influenced by supply-side administrative policies — rose by 0.1 per cent in September.
Overall inflation, listed as "consumer price index-all items" fell by 0.1 per cent, to 2.2 per cent in September, due to lower core inflation and private transport inflation.
MTI and MAS said overall inflation, on a month-on-month basis, rose by 0.2 per cent in September, easing from the 0.6 per cent rise in August.
This excludes non-consumption expenditure such as purchase of houses, shares and other financial assets and income tax.
The data showed that electricity and gas inflation remained at the same pace in September as in the preceding two months — at 8.7 per cent.
This was largely due to the increase in the regulated electricity tariff in July 2026.
Accommodation and food costs each rose by 0.1 per cent to 0.9 and 2.4 per cent respectively.
This was due to housing rents increasing at a faster pace, and higher inflation in both non-cooked food and food services.
Services inflation moderated from two per cent in August to 1.7 per cent in September due to a smaller increase
in point-to-point transport service costs and a larger decline in telecommunication service prices.
Meanwhile, private transport inflation fell from 7.5 per cent in August to 7.1 per cent in September due to a more gradual increase in car prices.
Retail and other goods inflation also moderated from 1.8 per cent in August to 1.2 per cent in September as furniture prices declined and clothing prices rose at a slower pace.
The ministry and authority noted that energy commodity prices have risen anew and are projected to remain high in the near term.
This, in turn, could lead to global and regional food prices picking up as costlier inputs and adverse weather patterns affect food production.
However, they also expect imported inflation to ease in 2027 as the effects of temporary supply disruptions fade.
Meanwhile, domestic price pressures are expected to stay subdued, with unit labour costs in the services sector expected to remain contained amid continued productivity gains.
"Enhanced government subsidies, such as for healthcare and education, will also dampen services inflation," METI and MAS said.
They expect core inflation to remain slightly elevated in the immediate quarters ahead, before easing from mid-2027.
Core inflation is projected to average 1.5 to 2 per cent in 2026 and between 1.5 to 2.5 per cent next year, the ministry and authority added.
"The risks to inflation remain tilted to the upside," METI and MAS stated, explaining that a sharp and sustained surge in global energy or food prices could lift Singapore's import costs by more than projected.
Domestic inflation could also stay elevated if spillovers from artificial intelligence-related boom broaden and unit labour costs rise more rapidly.
But higher-than-expected global interest rates or a pullback in AI-related investment could also exert a drag on growth, and thus, inflation.
Energy prices could also decline faster if production and shipments from the Middle East recover more quickly than projected, they said.
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