Core inflation cools to 0.7% for 2025 but MAS warns of 2026 rise

Food and services were the main anchors keeping prices stable as the year ended.

Singapore’s core inflation eased to 0.7% in 2025 from 2.8% a year ago, latest government data showed.

Month-on-month, core inflation held steady at 1.2% in December 2025, according to a joint announcement from the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry. This was largely because food and services inflation remained unchanged.

Headline inflation fell significantly to 0.9% for the full year of 2025 from 2.4% in 2024. Monthly data remained stable, with December’s headline rate holding at 1.2% as core prices and accommodation costs stayed flat.

Inflation rates in services, food, and accommodation were steady at 1.9%, 1.2%, and 0.3%, respectively. Meanwhile, private transport inflation picked up to 3.7% on the back of a smaller decline in petrol prices.

For electricity & gas, prices fell at a slightly faster pace to 4.2% on account of a larger decline in electricity costs.

Prices of retail & other goods were unchanged, as higher prices for alcoholic beverages & tobacco were offset by falling prices for personal effects and furniture.

For 2026, the MAS Core Inflation and CPI-All Items inflation are projected to rise.

“Singapore’s imported costs should continue to decline, albeit at a slower pace, over the course of this year. Whilst global crude oil prices are projected to fall this year, regional inflation should pick up modestly after their weak outturns last year,” authorities said.

“On the domestic front, unit labour cost growth should begin to increase as productivity growth normalises. Meanwhile, private consumption demand is likely to remain steady,” they added.