The Monetary Authority of Singapore (MAS) published its September 2026 consumer price update, showing annual core inflation easing to 2.0% from 2.2% in August as services and retail goods inflation moderated. Overall consumer price inflation declined to 2.2% from 2.3%, also helped by slower private transport price increases. Despite the September decline, core inflation is expected to remain slightly elevated in the immediate quarters ahead before easing more discernibly from mid-2027. Services inflation fell to 1.7% from 2.0%, reflecting smaller increases in point-to-point transport costs and a steeper decline in telecommunications prices. Retail and other goods inflation slowed to 1.2% from 1.8% as furniture prices fell and clothing prices rose more slowly. Private transport inflation eased to 7.1% from 7.5% as car price increases moderated. By contrast, food inflation rose to 2.4% and accommodation inflation edged up to 0.9%, while electricity and gas inflation remained at 8.7%. On a monthly basis, core prices increased 0.1% and overall consumer prices rose 0.2%. Imported cost pressures are expected to remain firm in the near term as energy prices stay high and costlier inputs and adverse weather lift global and regional food prices. Domestic pressures are expected to remain subdued, supported by contained services unit labour costs and enhanced healthcare and education subsidies. Core inflation is projected to average 1.5–2.0% in 2026 and 1.5–2.5% in 2027, while overall inflation is forecast at around 2.0% in 2026 and 1.5–2.5% in 2027. Risks remain tilted upward, including sustained energy or food price increases and broader spillovers from the artificial intelligence investment boom. Higher global interest rates, weaker artificial intelligence investment or a faster recovery in Middle East energy supplies could instead lower inflation.

Original source