Aerial view of Marina Bay Street Circuit, Singapore, September 17, 2024.
Roslan Rahman | AFP | Getty Images
Singapore’s inflation rate stabilized at a lower-than-expected 1.2% in November as higher service prices were offset by a sharp fall in electricity prices.
The figure was lower than the median estimate of 1.3% from analysts polled by Reuters.
The city-state’s core inflation rate, which excludes private transport and accommodation prices, also came in at 1.2%, compared to the expected 1.3%.
The rise in service inflation to 1.9% was due to significant increases in point-to-point transportation costs such as taxis, ride-hailing and ride-hailing services, and health insurance.
In contrast, retail and other goods inflation slowed due to lower electricity costs as well as lower prices for clothing, footwear, and personal care products.
MAS said in a statement that it expects core inflation to be around 0.5% in 2025, rising to between 0.5% and 1.5% in 2026. He said he expects headline inflation to average 0.5% to 1.0% in 2025 and 0.5% to 1.5% in 2026.
“Supply shocks, including those resulting from geopolitical developments, could cause some import costs to rise suddenly. However, a sharper-than-expected decline in global demand could cause core inflation to remain low for an extended period,” the statement said.
The inflation rate came after Singapore’s better-than-expected economic data, with non-oil exports rising 11.6% year-on-year in November, beating expectations for a 7% rise.
Singapore’s economy grew by 4.2% in the third quarter, beating expectations for a 4% expansion.
Singapore’s Ministry of Trade and Industry last month raised its annual GDP forecast for the country to “about 4%” and to about 1% to 3% in 2026, a sharp revision from its April forecast, which warned that zero growth was possible. The ministry said the global environment was more resilient than expected, with manufacturing and export demand remaining strong in the third quarter.
MAS has kept monetary policy on hold in its last two meetings, after easing it at its January and April meetings amid tariff threats to the global economy.
