Inflation accelerates to 1.8% in March on transport, retail and services costs

Core inflation and CPI-All Items inflation are expected to average 1.5% to 2.5% in 2026.

Singapore inflation rose in March 2026, with both core and headline measures climbing on higher private transport, retail, and service cost, according to data from the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) estimates.

MAS core inflation rose to 1.7% year on year in March from 1.4% in February, whilst consumer price index for all items (CPI-All Items) inflation increased to 1.8% from 1.2% over the same period.

On a month-on-month basis, core prices rose 0.1% in March, whilst CPI-All Items increased 0.5%.

CPI-All Items inflation increased due to higher private transport, retail and other goods, and services inflation. Private transport inflation rose on higher petrol prices.

Retail and other goods inflation increased, driven by larger rises in alcohol and tobacco prices, as well as higher clothing and footwear costs.

Services inflation edged up in March, driven by a larger increase in point-to-point transport services and higher telecommunications costs.

Accommodation inflation remained unchanged as housing rents rose at a similar pace in March and February. Food inflation held steady at 1.6%, as non-cooked food prices rose at the same rate, whilst food services inflation eased slightly.

Electricity and gas prices fell at the same rate in March as in February.

MAS core inflation excludes private transport and accommodation, whilst CPI-All Items includes both components.

Imported cost pressures are expected to rise in coming months as higher energy and input costs from developments in the Middle East pass through global supply chains, raising production and transport costs for imported goods and services.

Services unit labour costs are expected to grow more slowly in 2026 as nominal wage growth eases from 2025 levels, whilst consumer spending may also moderate amidst economic uncertainty.

MAS and MTI estimate core inflation and CPI-All Items inflation to average 1.5% to 2.5% in 2026.

Inflation risks are tilted to the upside, as further disruption to global energy supplies or shortages in intermediate inputs could raise imported costs.

A slowdown in industrial production or tighter global financial conditions could ease inflationary pressure through weaker demand, according to MAS and MTI.