Singapore Core Inflation Slows to Over 3-1/2-Year Low

Core consumer prices in Singapore climbed 0.8% year-on-year in January 2025, sharply easing from a downwardly revised 1.7% rise in the previous month and much slower than market forecasts of 1.5%.

This marked the lowest core inflation rate since June 2021, mainly due to moderating inflation across almost all broad core CPI categories: services (1.0% vs 1.6%), food (1.5% vs 2.3%), and accommodation (1.6% vs 2.1%), while deflation was seen in retail & other goods (-0.6% vs 0.5%) and electricity & gas (-2.9% vs 2.4%).

Meanwhile, private transport costs increased due to higher car prices (2.8% vs -0.9%).

Monthly, core CPI fell by 0.2% after rising 0.5% in December.

Last year, core inflation averaged 2.7%, much lower than 4.2% in 2023.

Core inflation is projected to average 1.0–2.0% in 2025.

The Department of Statistics Singapore said the CPI for general households has been rebased from the base year of 2019 to 2024.