\n<\/p>\n
\u201cAs higher energy costs pass through global supply chains with a lag, they are expected to raise production and transport costs for a wider range of Singapore\u2019s imported goods and services over time,\u201d said MAS and MTI.<\/p>\n
The authorities noted that while global energy prices have eased recently, they remain elevated in comparison to their 2025 levels.<\/p>\n
\u201cOn the domestic front, services unit labour costs are likely to increase at a slower pace this year as nominal wage growth eases from the firm levels last year. Meanwhile, domestic consumer spending could turn more cautious amid the economic uncertainty.\u201d<\/p>\n
Taking into account these factors, core inflation and overall inflation are expected to average 1.5 per cent to 2.5 per cent in 2026, which is in line with MAS’ full-year forecast range.<\/p>\n
\u201cAt this juncture, the risks to the inflation outlook remain tilted to the upside. A slower-than expected resumption in global energy supplies or continued shortages in key intermediate\u00a0inputs to regional supply chains could further raise imported costs for Singapore,\u201d said MAS and MTI.<\/p>\n
\u201cHowever, downside risks are also present. A stronger-than-expected tightening in global financial conditions could lead to a slowdown in economic activity and thus lower inflation.\u201d<\/p>\n<\/div>\n
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OUTLOOK \u201cAs higher energy costs pass through global supply chains with a lag, they are expected to raise production and transport costs for a wider…<\/p>\n","protected":false},"author":1,"featured_media":63110,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/dam.mediacorp.sg\/image\/upload\/s--v6N2QpzY--\/c_fill,g_auto,h_676,w_1200\/fl_relative,g_south_east,l_mediacorp:cna:watermark:2021-08:cna,w_0.1\/f_auto,q_auto\/v1\/mediacorp\/cna\/image\/2026\/05\/28\/singapore_central_business_district.jpg?itok=GfGpyxX3","fifu_image_alt":"","footnotes":""},"categories":[2],"tags":[2555,8773,6200,209,12661],"class_list":["post-63109","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buzz-news-sg-global","tag-core","tag-holds","tag-inflation","tag-singapores","tag-steady","wpcat-2-id"],"_links":{"self":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/63109","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=63109"}],"version-history":[{"count":0,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/63109\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/media\/63110"}],"wp:attachment":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=63109"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=63109"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=63109"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}