Government data confirmed that core inflation, which strips away the volatile categories of private road transport and accommodation, settled at 1.4%. While headline inflation dipped in previous months, the monthly data shows a return to positive territory at 0.7%. This stability serves as a crucial signal for policymakers navigating the fallout of the current energy shock, which has sparked fears of broader inflationary contagion.
In section Market Quotes
Singapore Consumer Prices Defy Energy Market Volatility
Consumer prices in Singapore maintained a steady 1.8% annual growth rate in May, defying expectations of an uptick despite persistent energy market instability. The figure matched April’s pace, coming in slightly below the 1.9% consensus forecast, even as supply chain disruptions from the Middle East continue to pressure global input costs.
Transport costs remain the primary driver of upward pressure, recording a 7.4% year-on-year increase, while food prices rose by 1.8%. Conversely, sectors such as information and communication saw a 2.9% decline, partially offsetting the rising cost of utilities and miscellaneous goods. The resilience of these figures suggests that, for now, the local economy is managing the transmission of higher transportation and fertilizer costs without triggering a wider price spiral.
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