Singapore’s inflation is expected to remain stable throughout 2026, according to RHB Bank’s latest Global Economics and Market Strategy Report. The bank projects both headline and core inflation to hold at 1.5%, aligning with the midpoint of the official target range of 1.0% to 2.0%. This forecast is attributed to strengthening domestic and external demand conditions.
Barnabas Gan, Group Chief Economist and Head of Market Research at RHB Bank, highlighted that the resilient economic backdrop and controlled inflation are likely to influence the Monetary Authority of Singapore (MAS) to maintain its current policy parameters at least into the first half of 2026.
In January, the Consumer Price Index (CPI) rose to 1.4% year-on-year, up from 1.2% in December. This increase was consistent with Bloomberg’s consensus and slightly below RHB’s in-house projection of 1.6%. Meanwhile, core inflation, which excludes accommodation and private road transport costs, fell to 1.0% from 1.2% in December.
The report underscores the importance of stable inflation in supporting economic growth and maintaining consumer confidence. As Singapore navigates the global economic landscape, the country’s ability to manage inflation effectively will be crucial in sustaining its economic momentum. Looking ahead, RHB’s projections suggest a steady economic environment, with no immediate changes anticipated in monetary policy.
