Core and headline inflation eases in August

However, every month headline inflation surged 0.5% in August.

Headline and core inflation eased in August year-on-year amidst dips in services inflation and accommodation inflation, according to the latest government statistics.

Consumer price index (CPI) in August dipped to 0.5% compared to 0.6% from the previous year. The government attributed the decrease in CPI to lower accommodation inflation, in addition to core inflation easing to 0.3% YoY in August, from 0.5% in July.

However, comparing month-on-month CPI increased to 0.5% compared to a dip of 0.4% in July.

By expenditure division, inflation in health and transport increased the most at 2.3% YoY. Inflation on Recreation, Sport & Culture saw the most decrease at a dip of 3% YoY.

In a joint statement, the Monetary Authority of Singapore and the Ministry of Trade and Industry said both MAS Core inflation and CPI inflation are projected to average 0.5–1.5% in 2025.

“The inflation outlook in the quarters ahead is subject to both upside and downside risks. Geopolitical shocks could lift imported energy and shipping costs abruptly. Conversely, should global and domestic growth be more hesitant and weaker than anticipated, core inflation could stay low for longer,” the statement said.