Singapore’s annual core inflation rate 0.6% in May, matching poll forecast

Published 06/23/2025, 01:04 AM
Updated 06/23/2025, 04:05 AM
© Reuters. FILE PHOTO: View of the skyline in Singapore, January 27, 2023. REUTERS/Caroline Chia/File Photo

By Jun Yuan Yong

SINGAPORE (Reuters) -Singapore’s key consumer price gauge rose 0.6% in May from a year earlier, official data showed on Monday, matching forecasts by economists.

The core inflation rate, which excludes private road transport and accommodation costs, was in line with a forecast rate of 0.6% in a Reuters poll of economists.

Headline inflation was 0.8% in annual terms in May, also matching the median poll forecast of 0.8%.     

It was the fifth consecutive month where the annual core rate was below 1%. 

DBS senior economist Chua Han Teng said that while inflation has remained subdued in 2025, he is monitoring upside risks from the conflict in the Middle East.

"Escalating tensions in the Middle East raise concerns about disruptions to global oil supplies, which could further drive up global crude oil prices, consequently increasing Singapore’s energy import prices, as well as electricity and travel-related costs," he said.

While Iran has yet to retaliate against U.S. attacks on its nuclear sites over the weekend, analysts remain concerned that it could choose to disrupt shipping through the Strait of Hormuz, affecting around a quarter of the world’s oil supplies and 20% of its liquefied natural gas

Singapore’s growth outlook has already dimmed due to economic uncertainties from U.S. tariffs. In April, the central bank loosened monetary policy for the second time this year and lowered forecasts for both core and headline inflation to 0.5%-1.5%. 

The median forecasts for headline inflation and core inflation for 2025 were lowered to 0.9% and 0.8%, according to a quarterly survey of forecasters by the central bank in June. In the same survey, almost three in five respondents expect further monetary policy easing at a review next month.  

Singapore has also downgraded its GDP forecast for 2025 to 0%-2% growth, with officials saying the city-state faces a risk of recession and job losses.  

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.