The Ledger

Inflation in Singapore: What Core Inflation and the CPI Measure, and Where They Stand

Posted by eduKate Asia on

By The Ledger desk · Last verified 28 September 2026

Singapore reports two inflation figures each month. Headline inflation, the CPI-All Items, covers everything households spend on. MAS core inflation leaves out accommodation and private transport, whose prices swing with property and car markets, to show the underlying trend. In August 2026, core inflation rose to 2.2%, its highest since September 2024, after 2.0% in July; headline inflation was 2.2% in July. MAS expects both to average 1.5% to 2.5% for 2026, having raised its forecast as higher energy costs fed through.

Quick facts

  • Headline (CPI-All Items): all household spending.
  • Core: leaves out accommodation and private transport.
  • Core inflation, August 2026: 2.2%, the highest since September 2024.
  • Headline inflation, July 2026: 2.2%.
  • MAS 2026 forecast for both: 1.5% to 2.5%.
  • Transport prices rose 7.9% in the year to July.

Why two measures?

Accommodation costs and car prices, which depend heavily on COE premiums, can swing sharply for reasons unrelated to everyday living costs. Leaving them out gives MAS a steadier view of the trend in prices for food, services, utilities and other goods. Headline inflation is the fuller picture of what households pay.

What’s driving prices in 2026?

Mainly energy. Higher global fuel prices, linked to the conflict in the Middle East, have pushed up electricity and transport costs and are feeding through supply chains into imported goods. In July, transport prices were up 7.9% on a year earlier, food 2.2% and health 3.3%, while information and communication prices fell.

How does MAS respond?

Unlike most central banks, MAS manages the Singapore dollar’s exchange rate against a basket of currencies rather than setting an interest rate. A stronger Singapore dollar makes imports cheaper, which matters because Singapore imports most of what it consumes.

The WahLiao Verdict

Around 2% inflation means your money buys about 2% less each year. Savings earning less than that are shrinking in real terms. Compare what your accounts pay with the core figure, not with zero.

Questions people ask

Where are the figures published?

The Department of Statistics publishes the CPI monthly, with a joint MAS and MTI statement on core inflation.

Why does my bill feel higher than 2%?

The index averages across all households. If you spend more on transport or electricity, your own inflation will be higher.

What’s MAS’s target?

MAS aims for medium-term price stability, and core inflation of just under 2% is generally seen as consistent with that.

Do government payouts account for inflation?

Some support, such as the enhanced 2026 Cost-of-Living Special Payment, was raised in response to rising costs.

Sources: Trading Economics on the August and July 2026 figures; Bernama via Malay Mail on the MAS and MTI statement and forecast; MUFG Research on MAS’s exchange-rate policy. The Ledger explains; it does not advise.

Read next: This Month’s Fixed Deposit and Savings Rates · GST Voucher and Cost-of-Living Payouts · Back to The Ledger

For what’s worth it this week, with the bill shown, read The WahLiao Week.

Leave a comment