Singapore’s core inflation rose to 2% year-on-year in July 2026, up from 1.6% in June, with price increases in electricity, gas, services, and food sectors driving the rise [1, 2, 3]. Overall consumer inflation rose to 2.2% year-on-year in July from 1.9% in June, partly due to higher accommodation costs [1, 2, 3].
Electricity and gas prices surged 8.7% year-on-year in July, reversing a 2.9% decline in June. This sharp increase was mainly caused by higher electricity tariffs linked to elevated global energy prices and the ongoing Middle East conflict, including the Iran war [1, 2, 3, 4]. Prime Minister Lawrence Wong said, "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].
Food inflation increased to 2.2% in July from about 2.0% to 2.1% in June, driven by faster price rises in food services and non-cooked food items [1, 2, 3, 6]. Services inflation rose to 1.7% from 1.5%, led by higher airfares and point-to-point transport fares [1, 3]. Accommodation inflation also rose to 0.8% from 0.6%, reflecting higher housing rents and maintenance fees [1, 2].
Private transport inflation moderated slightly to 8% from 8.4% in June after petrol and diesel price increases slowed [1, 2]. Retail and other goods inflation eased to 1.4% from 1.7% due to lower inflation in furniture and personal care products [1, 3]. On a month-on-month basis, core prices rose 0.3% in July while the overall consumer price index fell 0.2% [2, 6].
Authorities noted that global energy prices remain elevated and volatile, while adverse weather is expected to reduce agricultural yields, increasing Singapore’s imported food prices. "As higher input costs pass through global supply chains, the prices of a wider range of Singapore’s imported goods and services are expected to pick up in the quarters ahead," said the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) [3]. They added, "The risks to inflation remain tilted to the upside. Renewed disruptions in global energy supplies or worse-than-expected weather conditions could raise imported costs by more than anticipated" [4].
The MAS tightened monetary policy at the end of July 2026, adjusting the Singapore dollar nominal effective exchange rate band to curb imported inflation risks [5, 7, 4]. The government has rolled out about S$2 billion in support measures so far in 2026 to help citizens cope with external shocks from the Iran war and energy price rises [5, 7].
Singapore’s Ministry of Trade and Industry updated its 2026 GDP growth forecast to 4.5% to 5.5%, up from previous estimates of 2% to 4%, citing strong second-quarter GDP and AI-led investment [5, 8]. MAS and MTI reaffirmed their core and overall inflation forecasts for 2026 at 1.5% to 2.5% [3, 9].
On August 24, MAS and MTI released official inflation data confirming July’s inflation rise and maintained the inflation outlook for the rest of 2026 [1, 3, 4].
