By Jun Yuan Yong
Singapore Inflation Data
SINGAPORE (Reuters) – Singapore’s key consumer price gauge rose 0.6% in May from a year earlier, official data showed on Monday, matching forecasts by economists.
The core inflation rate, which excludes private road transport and accommodation costs, was in line with a forecast rate of 0.6% in a Reuters poll of economists.
Headline inflation was 0.8% in annual terms in May, also matching the median poll forecast of 0.8%.
It was the fifth consecutive month where the annual core rate was below 1%.
DBS senior economist Chua Han Teng highlighted that while inflation has remained subdued in 2025, he is monitoring upside risks from the conflict in the Middle East.
“Escalating tensions in the Middle East raise concerns about disruptions to global oil supplies, which could further drive up global crude oil prices, consequently increasing Singapore’s energy import prices, as well as electricity and travel-related costs,” he said.
While Iran has yet to retaliate against U.S. attacks on its nuclear sites over the weekend, analysts remain concerned that it could choose to disrupt shipping through the Strait of Hormuz, affecting around a quarter of the world’s oil supplies and 20% of its liquefied natural gas.
Economic Outlook
Singapore’s growth outlook has already dimmed due to economic uncertainties from U.S. tariffs. In April, the central bank loosened monetary policy for the second time this year and lowered forecasts for both core and headline inflation to 0.5%-1.5%.
The median forecasts for headline inflation and core inflation for 2025 were lowered to 0.9% and 0.8%, according to a quarterly survey of forecasters by the central bank in June. In the same survey, almost three in five respondents expect further monetary policy easing at a review next month.
Singapore has also downgraded its GDP forecast for 2025 to 0%-2% growth, with officials saying the city-state faces a risk of recession and job losses.
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