Singapore's core inflation rises to 2% in July on higher electricity and gas, services and food prices

SINGAPORE, 24 AUGUST 2026 —

The Monetary Authority of Singapore and the Ministry of Trade and Industry said higher electricity and gas tariffs, stronger services inflation and faster food price gains drove the increase. Core prices, which exclude accommodation and private transport, climbed 0.3 per cent month-on-month after a 0.1 per cent rise in June.

Electricity and gas inflation reversed a June decline of 2.9 per cent to jump 8.7 per cent in July as electricity tariffs surged. Services inflation accelerated to 1.7 per cent from 1.5 per cent as airfares and point-to-point transport fares climbed faster. Food inflation ticked up from 2.1 per cent to 2.2 per cent as food services and non-cooked food prices rose.

Accommodation inflation rose to 0.8 per cent from 0.6 per cent after larger increases in housing rents and maintenance fees. Private transport inflation eased marginally to 8 per cent from 8.4 per cent as the pace of petrol and diesel price increases moderated.

Authorities warned elevated global energy prices would keep electricity and gas tariffs high and lift transport fares. Persistent high oil prices and adverse weather are expected to reduce agricultural yields and raise Singapore’s imported food prices.

“As higher input costs pass through global supply chains, the prices of a wider range of Singapore’s imported goods and services are expected to pick up in the quarters ahead,” MAS and MTI said.

Services inflation should rise at a slower pace as productivity growth improves and nominal wage growth moderates, while government subsidies will continue to dampen price pressures.

MAS and MTI maintained their full-year inflation forecast, projecting core and overall inflation to average 1.5 per cent to 2.5 per cent in 2026. Core inflation is expected to stay elevated into 2027 before easing from mid-year as global energy prices stabilise.

“At this juncture, the risks to the inflation outlook remain tilted to the upside,” the authorities said. Renewed energy supply disruptions or worse-than-expected weather could push imported costs higher than anticipated. Stronger global IT investment could also sustain demand and keep prices higher for longer.

Downside risks remain, they added, pointing to tighter global financial conditions or a pullback in artificial-intelligence spending that could slow economic activity and ease inflation pressures.

Related: Monetary Authority of Singapore · Singapore