Singapore Inflation Remains Benign Despite Slight Uptick in September 2025
The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) reported that core inflation rose slightly to 0.4% year-on-year in September 2025, up from 0.3% in August. Headline inflation also edged up to 0.7%, reflecting modest price increases across several key expenditure categories.
The mild uptick was mainly driven by higher food and services costs, partly offset by a slower pace of increase in private transport and accommodation prices. On a month-on-month basis, both measures of inflation remained broadly stable, suggesting that underlying price pressures are contained.
- Food Inflation: Continued to rise moderately due to higher prices of prepared meals and non-cooked food.
- Services Inflation: Increased slightly, reflecting higher costs in recreation, personal care, and health services.
- Private Transport & Accommodation: Both categories saw slower price increases, helping to contain overall inflation.
Overall, consumer prices remain well-anchored amid weak global demand, stable energy markets, and a strong Singapore dollar that continues to mitigate imported cost pressures.
Economic & Policy Outlook
MAS expects core inflation to average between 0.5% and 1.0% for 2025, with headline inflation likely within a similar range. Price pressures are projected to stay modest in the coming quarters, supported by easing global commodity prices and subdued domestic demand.
Given this environment, MAS is expected to maintain its current monetary policy stance, keeping the Singapore dollar nominal effective exchange rate (S$NEER) policy band on a zero-appreciation path. This reflects MAS’s focus on sustaining price stability while supporting a gradual economic recovery.
MAS and MTI highlighted that upside risks from supply chain disruptions and higher global oil prices could lift inflation slightly, but these are likely to be offset by soft external demand and a gradual pace of domestic recovery, keeping overall price growth stable.
Summary
Singapore’s September 2025 inflation figures reaffirm that the economy is in a low-inflation environment, with stable fundamentals and well-managed price dynamics. For businesses, this offers continued clarity for cost planning.
