Singapore’s core inflation fell to 1% in January, down from 1.2% in December

This was led by a larger fall in airfares and a decline in general, vocational and higher education fees, MAS and MTI said.

Electricity and gas prices remained unchanged at -4.2 per cent in January, as electricity tariffs declined at a similar pace as in December.

Food inflation also stayed unchanged at 1.2 per cent, as the prices of non-cooked food and food services rose at similar rates in January and December.

Retail and other goods inflation rose to 0.5 per cent in January from 0.0 per cent, on account of an increase in the cost of other appliances for personal care.

Private transport inflation eased to 2.7 per cent in January from 3.7 per cent due to a smaller increase in car prices and a steeper decline in petrol prices.

Accommodation inflation went up to 1.9 per cent in January, up from 0.3 per cent, due to a larger increase in the cost of housing maintenance and repairs.

OUTLOOK

MAS and MTI said Singapore’s imported costs should remain contained, as global crude oil prices have risen in recent weeks but are expected to remain lower than levels a year ago.

Regional consumer price inflation should pick up modestly after their weak outturns last year, although broadly subdued producer prices in Asia should cap the extent of inflationary pressures. 

“On the domestic front, unit labour cost growth should edge higher in 2026, but the extent of pick-up will be dampened by sustained productivity growth,” said MAS and MTI.

“Meanwhile, private consumption demand is likely to remain steady, underpinned by continued real wage increases.”

Reflecting these factors, MAS and MTI said core and overall inflation are projected to average 1.0–2.0 per cent in 2026. 

However, the inflation outlook remains subject to uncertainties, said MAS and MTI, as stronger-than-expected growth could bolster demand-pull inflationary pressures.

“Supply shocks, including those triggered by geopolitical developments, could also lift imported costs,” they said. “Conversely, a large, discrete shock to growth from macroeconomic and financial stressors could dampen inflation.”