Singapore core inflation rises to 2.2% in August, seen elevated until mid-2027

Facts

According to August consumer price data released by the Ministry of Trade and Industry (MTI) on 23 September 2026, MAS core inflation was 2.2% year on year, up from 2.0% in July, and 0.3% month on month. Headline (CPI-All Items) inflation was 2.3% (up from 2.2% in July), and 0.6% month on month (source: MTI). ¹ The increase reflected faster inflation in services, retail and other goods, and food (source: MTI).

Electricity and gas prices rose 8.7% year on year in both July and August, mainly because of the regulated electricity tariff increase in July 2026 (source: AsiaOne). MTI and MAS expect both core and headline inflation to average 1.5–2.5% in 2026, with core staying elevated until early 2027 and easing from around mid-2027 as energy prices settle. Upside risks are energy supply disruptions and weather-driven food prices; downside risks are tighter global financial conditions and slower AI-related investment (source: AsiaOne, reporting the joint MTI–MAS release). ²

Analysis

By component, electricity and gas inflation (8.7%) is roughly four times core (2.2%), so the added burden falls disproportionately on households for whom utilities are a larger share of spending. July's regulated tariff increase will keep pushing up prices for some time, which is why the authorities expect elevated inflation until mid-2027. Even as the growth outlook for Southeast Asia is revised up, Singapore households continue to face cost-of-living pressure.

Implications

Counterpoints and uncertainties

The official forecast spans a range; if energy prices settle sooner, the elevated period could be shorter. If nominal wage growth outpaces inflation, the effect on repayment capacity would be limited. The forecast, risk factors and electricity and gas figures were confirmed via press coverage; the joint MTI–MAS PDF was not reviewed.