Singapore Core Inflation Holds Steady at 0.6% in June Ahead of MAS Review

Singapore's core inflation rate remained steady at 0.6% year-on-year in June 2025, slightly below economists' expectations of 0.7%, with headline inflation also steady at 0.8%, missing the 0.9% forecast. The rise in prices for retail goods and private transport was offset by slower inflation or declines in food, accommodation, electricity, and other consumer categories, resulting in subdued overall inflation pressures. This inflation data aligns with the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) outlook that imported inflation would stay moderate, supported by lower global crude oil prices and contained food commodity price increases. MAS had eased monetary policy in April due to slowing growth and lower inflation forecasts, with the latest figures strengthening the case for maintaining an accommodative stance ahead of its policy review scheduled for July 30. Domestic factors such as moderate nominal wage growth, productivity gains, and government subsidies on key services are expected to keep service inflation in check while Singapore faces a fragile economic recovery. Economists and official statements emphasize that despite some price increases, Singapore's inflation environment remains subdued, supporting cautious monetary policy decisions.