Singapore’s Core Inflation Hits Four-Year Low at 0.3% in August
Singapore’s core inflation rate experienced its lowest rise since February 2021, registering at 0.3% for August 2025. This figure, which excludes the costs of private transport and accommodation, fell short of the 0.5% anticipated by economists surveyed by Reuters. This marks a decline from the 0.5% recorded in July 2025.
Overall headline inflation for Singapore also decreased, coming in at 0.5%, down from 0.6% in the previous month. The Monetary Authority of Singapore (MAS) attributed this easing of inflation primarily to reduced costs in the services sector, particularly in holiday expenses, airfares, and inpatient services.
Key Drivers of Inflation Trends
Despite the easing core inflation, the largest contributor to inflation in August was private transport. Notably, car prices increased, while petrol prices declined at a slower rate. The MAS maintained its full-year inflation forecast for 2025, estimating it will range between 0.5% and 1.5%. This is a significant adjustment from the 2.8% forecast for 2024.
In its assessment, the MAS stated, “Although the ongoing trade conflicts could be inflationary for some economies, their impact on Singapore’s import prices is likely to be offset by the disinflationary drags exerted by weaker global demand.” This perspective highlights the complex interplay of local and global economic factors influencing inflation in Singapore.
Economic Outlook and Growth Projections
Singapore’s inflation data emerges amid expectations of a slowdown in economic growth for the latter half of the year. After a robust performance in the second quarter of 2025, where the country recorded a GDP growth of 4.3%—up from 4.1% in the first quarter—the Ministry of Trade and Industry has revised its growth forecast. It now projects full-year growth to fall between 1.5% and 2.5%, a notable decrease from the 4.4% growth seen in 2024.
Initial estimates for this year had suggested GDP growth could be as low as 0% to 0.2%. These forecasts indicate a cautious outlook for Singapore’s economy as it navigates shifting global dynamics and internal market conditions.
As the situation develops, further updates will be provided to reflect any changes in economic indicators or government projections.
