\n<\/p>\n
The authorities noted that elevated global energy prices led to increases in Singapore\u2019s electricity and gas tariffs and higher transportation fares.<\/p>\n
\u201cGlobal oil prices remain high and volatile, while adverse weather conditions are expected to lower agricultural yields and raise Singapore\u2019s imported food prices,\u201d said MAS and MTI.<\/p>\n
The prices of a wider range of Singapore\u2019s imported goods and services are expected to pick up in the coming quarters as higher input costs pass through global supply chains, the ministries added.<\/p>\n
On the domestic front, services unit labour costs are likely to rise at a slower pace amid sustained productivity growth and moderating nominal wage growth.<\/p>\n
Enhanced government subsidies will also continue to have a dampening effect on services inflation, the authorities said.<\/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, in line with MAS’ full-year forecast range.<\/p>\n
Core inflation is expected to remain elevated into 2027 before moderating more discernibly from around mid-2027, alongside the expected easing in global energy prices.<\/p>\n
\u201cAt this juncture, the risks to the inflation outlook remain tilted to the upside. Renewed disruptions in global energy supplies or worse-than-expected weather conditions could raise Singapore\u2019s imported costs by more than anticipated,\u201d said MAS and MTI.<\/p>\n
Inflation could also be more persistent than projected if robust IT investment growth generates stronger demand spillovers globally and in Singapore, the authorities added.<\/p>\n
\u201cHowever, downside risks remain. An unexpected tightening in global financial conditions or a pullback in AI-related investment could lead to a slowdown in economic activity and, in turn, lower inflation.\u201d<\/p>\n<\/div>\n
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OUTLOOK The authorities noted that elevated global energy prices led to increases in Singapore\u2019s electricity and gas tariffs and higher transportation fares. \u201cGlobal oil prices…<\/p>\n","protected":false},"author":1,"featured_media":87221,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/dam.mediacorp.sg\/image\/upload\/s--7WqJClfj--\/c_crop,h_576,w_1024,x_0,y_61\/c_fill,g_auto,h_676,w_1200\/fl_relative,g_south_east,l_mediacorp:cna:watermark:2023-11:afp_watermark_14112023,w_0.1\/f_auto,q_auto\/v1\/mediacorp\/cna\/image\/2026\/03\/31\/000_a4gf7km.jpg?itok=gH6bIG__","fifu_image_alt":"","footnotes":""},"categories":[2],"tags":[2739,2555,1950,6200,7509,209,30234],"class_list":["post-87220","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buzz-news-sg-global","tag-august","tag-core","tag-high","tag-inflation","tag-rises","tag-singapores","tag-twoyear","wpcat-2-id"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/87220","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=87220"}],"version-history":[{"count":0,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/87220\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/media\/87221"}],"wp:attachment":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=87220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=87220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=87220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}