Singapore’s core inflation jumps to 1.2% in October, highest so far in 2025

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.