Singapore’s inflation is projected to continue its downward trend into the fourth quarter of 2025, according to the latest Global Economics and Market Strategy Report by RHB Bank. The report, attributed to Barnabas Gan, Group Chief Economist and Head of Market Research at RHB Bank, maintains the full-year projections for headline and core inflation at 1.2% and 0.9%, respectively.
In August 2025, Singapore’s headline Consumer Price Index (CPI) decreased to 0.5% year-on-year, down from 0.6% in July, and below Bloomberg’s estimates of 0.6%. Core inflation also eased to 0.3% year-on-year from 0.5% in July. These figures suggest a continued moderation in inflationary pressures.
As the Monetary Authority of Singapore (MAS) prepares for its policy review in October, RHB Bank’s base case anticipates no changes to the current policy parameters through the end of the year. However, there is a possibility that the Singapore dollar nominal effective exchange rate (S$NEER) slope could flatten, reflecting a balance of risks.
This outlook is significant as it indicates a stable economic environment, potentially influencing monetary policy decisions and economic planning. The easing inflation could provide relief to consumers and businesses, fostering a more predictable economic landscape.
