Inflation in Singapore holds steady at 1.8%, but some everyday costs are still climbing
Singapore’s overall inflation rate remained unchanged in May, but that does not necessarily mean consumers are paying less for everyday essentials.
According to the latest Consumer Price Developments report released by the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI), overall inflation stayed at 1.8% year-on-year in May, similar to the month prior.
Core inflation, which excludes accommodation and private transport costs, also remained unchanged at 1.4%.
While inflation appears stable on paper, several key spending categories continued to register price increases, the report published on Tuesday (23 June) said.
Food prices rose faster in May
Food inflation accelerated from 1.6% in April to 1.8% in May, driven by higher prices for both food services and non-cooked food.
Source: Monetary Authority of Singapore website
According to the report, the prices of non-cooked food and food services “rose at a quicker pace”.
For many Singaporeans, this means meals at hawker centres, coffee shops and restaurants could still feel more expensive despite the broader inflation rate holding steady.
Accommodation costs continue to climb, electricity and gas inflation remains unchanged
Accommodation inflation rose slightly to 0.5% in May, up from 0.4% in April.
Although accommodation costs are excluded from MAS Core Inflation, they remain a significant expense for homeowners and tenants, particularly amid Singapore’s still-elevated rental market.
Meanwhile, retail and other goods inflation increased from 1.5% to 1.6%, while private transport inflation rose from 8.1% to 8.6%.
Despite this increase, the CPI-All Items inflation remained 1.8% year-on-year in May.
According to the report, the rate was “largely offset by lower services inflation”.
Electricity and gas inflation stayed unchanged, at -3%.
Source: Consumer Price Development in May 2026
It was unchanged “as electricity prices declined at a similar pace in April and May,” the report said.
The report also noted that accommodation and food costs were among the biggest contributors to overall inflation.
MAS keeps inflation forecast unchanged
Despite the recent ease, global energy prices remain high, comparable to 2025’s levels, MAS and MTI said.
Source: Consumer Price Development in May 2026
The authorities added: “On the domestic front, services unit labour costs are likely to increase at a slower pace this year as nominal wage growth eases from the firm levels last year. Meanwhile, domestic consumer spending could turn more cautious amid the economic uncertainty.”
As a result, core inflation and overall inflation are projected to average 1.5–2.5% in 2026.
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Featured image by MS News.
