Singapore’s Core Inflation Rises to 0.7% in April Over Mixed Price Trends

The rise in core inflation to 0.7% in April 2025 from 0.5% in March was mainly caused by higher prices for services and food. Singapore Inflation did not change, staying at 0.9% instead of the predicted 0.8% by economists, reported the latest figures from the Department of Statistics. Overall, the rise in price did not translate into greater overall inflation, due to a drop in prices for accommodation, transport services and retail goods last month. The MAS and MTI did not alter their 2025 inflation estimate, saying that uncertainties from abroad are putting more pressure on inflation from below.

Services and Food Drive Inflation Increase

Higher health insurance costs pushed service costs up 1.1% in April compared to 0.6% in March, as airfare did not increase. A faster increase in prices of uncooked food items helped raise food inflation to 1.4%. Because of these sectors, the core inflation number that does not include housing and transport went up. Compared to the previous month, core prices went up by 0.5%, but the whole CPI index dipped by 0.3%, thanks to softer spending trends among ordinary households.

MAS, MTI Maintain Cautious Outlook

Though some areas in the country are affected by inflation, MAS and MTI believe that imported inflation will remain modest. The price increases for basic services, especially the increase in labor costs, are likely to proceed slowly. However, growing subsidies from the government should assist in limiting inflation in the short run. Inflation of accommodation fell to 1.1% from 1.4% last month and private transport inflation was 1.3%, as both cars and petrol became less expensive. Both core and headline inflation are expected to fall between 0.5% and 1.5% this year, with the lower bound taken down in April by the MAS.

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