Singapore’s core inflation rises to 2% in July on higher electricity, food and services costs

Singapore’s core inflation rose to 2.0% year-on-year in July 2026, up from 1.6% in June, the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) reported on August 24 ^{[1, 2, 3]}. Overall headline inflation increased to 2.2% in July from 1.9% in June, also exceeding expectations ^{[1, 2, 3]}.

Energy costs led the rise, with electricity and gas prices surging 8.7% in July compared to a 2.9% decline in June. The spike was largely due to a sharp 17% increase in regulated electricity tariffs, accounting for 0.3 percentage points of the core inflation gain, according to Barclays’ Brian Tan ^{[1, 2, 3, 4]}. MAS and MTI said elevated global energy prices and geopolitical tensions had pushed up Singapore’s electricity and gas tariffs, as well as transportation fares ^[3].

Food inflation edged higher to around 2.2% in July from approximately 2.0-2.1% the previous month, driven by rising prices for food services and non-cooked food ^{[1, 2, 3]}. Services inflation climbed to roughly 1.7% from 1.5%, triggered by higher airfares and point-to-point transport costs ^{[1, 2, 3]}. Accommodation inflation also rose to 0.8% in July from 0.6%, reflecting growth in housing rents and maintenance fees ^{[1, 2, 3]}.

Private transport inflation eased slightly to 8.0% in July from 8.4% in June, as increases in petrol and diesel prices slowed ^{[1, 2, 3]}. Retail and other goods inflation moderated to about 1.4% from 1.7% the previous month ^{[1, 3]}.

Prime Minister Lawrence Wong on August 23 acknowledged the impact of the Middle East conflict, saying, "We are dealing with a major crisis in the Middle East. Shipping through the Strait of Hormuz has been disrupted. This has exposed vulnerabilities in energy, food and other critical supplies" ^[5]. MAS and MTI linked higher inflation to global energy prices, the war in the Middle East, and adverse weather reducing agricultural yields ^[3].

Singapore has rolled out nearly S$2 billion in support measures to counter inflation risks arising from geopolitical tensions, including the US-Iran conflict ^[5]. Despite inflation pressures, the government sharply revised up the 2026 GDP growth forecast to 4.5% - 5.5% from an earlier 2.0% - 4.0%, citing an AI boom and economic resilience ^{[5, 6, 7]}.

MAS expects core and headline inflation for 2026 to remain between 1.5% and 2.5% for the full year ^{[1, 3, 8]}. The next inflation update is expected with August data in late September.