Singapore’s core inflation stays flat at 1.2% in November

“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.

Overall inflation is meanwhile 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, MAS and MTI added.