Singapore inflation remained unchanged at 1.8% in May, surprising economists as falling telecommunication service costs helped balance increases in transport, housing, retail and food prices across the economy.
The latest data from Singapore matched April’s reading and came in below the 2% forecast by economists surveyed by Reuters, highlighting mixed price trends across key consumer categories.
Officials reported that inflation in private transport rose due to higher car and motorcycle prices, while accommodation, retail and food sectors also added upward pressure. However, lower telecommunication service costs helped offset some of these increases.
Core inflation, which excludes accommodation and private transport, stood at 1.4%, also below expectations of 1.6%, suggesting subdued underlying price momentum.
The Monetary Authority of Singapore (MAS) noted that energy prices have eased in recent months but remain elevated compared with 2025 levels. It warned that earlier increases in global energy costs may still feed through supply chains, potentially raising production and transport expenses in the coming months.
Analysts pointed to multiple contributing factors, including fuel price volatility linked to geopolitical tensions and higher vehicle ownership costs driven by Singapore’s quota-based car system.
The MAS recently tightened monetary policy in April, its first adjustment since 2022, citing persistent inflation risks. Unlike most central banks, it manages policy through exchange rate adjustments rather than interest rates, allowing the Singapore dollar to fluctuate within a controlled band.
Despite inflation stability, Singapore’s economy has shown resilience. Gross domestic product expanded by 6% year-on-year in the first quarter, exceeding forecasts. However, authorities have warned that global geopolitical tensions could weigh on future growth and price stability.
