Singapore’s inflation rate is expected to rise to 1.5% in 2026, according to RHB Bank’s latest Global Economics and Market Strategy Report. The forecast, attributed to Barnabas Gan, Group Chief Economist and Head of Market Research at RHB Bank, highlights three key factors influencing this trajectory: favourable economic conditions, private consumption support, and global commodity price fluctuations.
Currently, both headline and core Consumer Price Index (CPI) figures remain steady at 1.2% year-on-year, consistent with RHB’s and Bloomberg’s estimates. This stability follows an average headline and core inflation rate of 0.9% and 0.7%, respectively, in 2025.
The report underscores the importance of monitoring global commodity prices, which could impact inflation rates. As Singapore navigates these economic factors, the forecasted inflation rate reflects a balance between domestic economic strength and external influences.
Looking ahead, RHB Bank’s analysis suggests that Singapore’s inflation will remain manageable, with economic conditions and consumption patterns playing pivotal roles. The bank’s previous report, released on 16 January, expressed optimism about export prospects in 2026, further supporting a stable economic outlook.
