Singapore core inflation rises to 0.7% in April

It was driven by higher food and services prices.

Singapore’s core inflation inched up to 0.7% year-on-year (YoY) in April, up from 0.5% in March, according to a joint release by the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI).

The increase was driven by higher food and services prices. On a month-on-month (MoM) basis, core inflation rose by 0.5%.

Overall inflation, measured by CPI-All Items, remained unchanged at 0.9% YoY. Lower accommodation and private transport inflation offset the rise in core inflation. MoM, overall inflation fell by 0.3%

Food inflation rose slightly to 1.4%, up from 1.3%, due to faster increases in non-cooked food prices. Private transport inflation dropped to 1.3% from 2.1%, with smaller car price increases and a larger fall in petrol prices. Accommodation inflation eased to 1.1% from 1.4%, driven by slower increases in rents and maintenance costs.

Retail and other goods prices declined further, despite higher water prices, due to cheaper clothing, footwear, and health products. Electricity and gas inflation was unchanged.

Looking ahead, imported inflation is expected to remain moderate amid slowing global demand and stable supply conditions. Crude oil prices are forecast to be lower than in 2024, and food commodity price increases are projected to be contained.

Whilst global trade tensions could exert some upward pressure on prices, their impact on Singapore is likely to be outweighed by disinflationary forces from weak external demand.

Domestically, unit labour costs are expected to rise gradually as wage growth moderates, supported by gains in productivity.

Government subsidies in essential services, including healthcare, pre-school education, and public transport, are also expected to mitigate inflation in services.

MAS and MTI expect both core and overall inflation to average between 0.5% and 1.5% in 2025. Risks are tilted to the downside due to global uncertainties.