Overall inflation in Singapore remained stable in May, maintaining a rate of 1.8% year-on-year. However, an analysis of the latest Consumer Price Index (CPI) report reveals that while headline figures are steady, several essential spending categories, notably food and housing, experienced increases.
Key Inflation Metrics for May
According to the recent Consumer Price Developments report issued by the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI), the overall inflation rate was unchanged at 1.8% year-on-year for May, mirroring the preceding month’s figure.
Furthermore, core inflation—the measure that excludes expenses related to private transport and accommodation—also held steady at 1.4%. The report, which was published on Tuesday (23 June), detailed specific movements across various spending units.
Rising Costs in Food and Accommodation
Despite the stability of the overall rate, two key areas saw noticeable price increases. Food inflation accelerated significantly, moving from 1.6% in April to 1.8% in May. This surge was attributed to higher costs associated with both food services and pre-packaged, non-cooked foods.
Additionally, housing expenditures continued their upward trend. Accommodation inflation saw a slight rise to 0.5% in May, up from 0.4% recorded in April. Although accommodation costs are excluded when calculating the MAS Core Inflation rate, they represent a major expense for both renters and property owners in Singapore’s currently elevated rental market.
In other sectors, retail and other goods inflation rose marginally, increasing from 1.5% to 1.6%. Meanwhile, private transport inflation increased from 8.1% to 8.6%. These increases were partially offset by lower services inflation, allowing the CPI-All Items rate to remain at 1.8%.
Stable Utilities and Future Projections
Utility costs showed stability; electricity and gas inflation remained unchanged at -3%. This was because electricity prices declined in May at a similar pace to their decline recorded in April.
Looking ahead, MAS and MTI cautioned that global energy prices remain elevated, comparable to levels seen in 2025. On the domestic front, authorities anticipate that unit labor costs within the services sector will increase more slowly this year as nominal wage growth moderates from the firm-level increases observed last year. They also noted that consumer spending may become more cautious given current economic uncertainties.
Consequently, MAS and MTI project that both core inflation and overall inflation are expected to average between 1.5% and 2.5% throughout 2026.
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