Singapore’s core and headline inflation rates remained unchanged in June 2025, standing at 0.6% and 0.8% year-on-year, respectively, according to recent data. These figures, slightly below Bloomberg’s consensus estimates, indicate a stabilisation in price pressures across most major components of the Consumer Price Index (CPI), except for retail and other goods which saw some upward movement.
Private transport costs experienced a notable increase, with inflation rising to 2.0% year-on-year, reversing a three-month decline. This surge was driven by higher Certificate of Entitlement (COE) premiums, which saw Category A and B prices rise by 1.2% and 3.2%, respectively. Analysts suggest this rebound is due to consumers re-entering the market after a previous dip in prices.
The Monetary Authority of Singapore (MAS) is expected to adopt a more dovish stance in its upcoming policy meeting, influenced by the easing core inflation. The MAS noted that global crude oil prices have softened, and food commodity prices are expected to remain stable. Despite global trade tensions, the impact on Singapore’s import prices is likely to be minimal due to disinflationary pressures from weaker global demand.
Looking ahead, the MAS may adjust its policy to support economic growth amidst external uncertainties. The current forecast for the Consumer Price Index (CPI) remains at 1.0% for 2025, reflecting a broader trend of moderating price pressures.
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