Singapore’s inflation rates have remained relatively stable in the first half of 2026, according to RHB Bank’s latest Global Economics and Market Strategy Report. Headline inflation rose by 1.7% whilst core inflation increased by 1.4% during this period. However, Barnabas Gan, Group Chief Economist and Head of Market Research at RHB Bank, warns of potential inflationary pressures in the second half of the year.
The report highlights that inflationary pressures could intensify if disruptions to oil supplies from the Middle East occur and persist. In such a scenario, the headline Consumer Price Index (CPI) is projected to average around 4.0% in the latter half of 2026. This projection is a significant increase from the current figures, indicating potential economic challenges ahead.
June saw a slight increase in headline inflation, edging up to 1.9% year-on-year from a 1.8% rise in May. This was below RHB’s in-house projection of 2.1% and Bloomberg’s consensus estimate of 2.0%. Core inflation also accelerated to 1.6% year-on-year from 1.4% in May.
Despite these potential challenges, RHB maintains its full-year headline and core inflation forecasts at 2.5% and 2.0%, respectively. The bank’s report underscores the importance of monitoring global oil supply dynamics, which could significantly impact Singapore’s economic landscape in the coming months.
