Singapore’s core inflation rate remained unchanged at 1.4% in May, as a decline in services prices counterbalanced rising costs for food and retail goods, according to data released by the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI).
The stability in underlying inflation provides the central bank with continued justification to maintain its current policy stance.
With headline inflation already running below the 2% forecast seen in April, the May print suggests that domestic price pressures remain contained despite broader global volatility.
With headline inflation already running below the 2% forecast seen in April, the May print suggests that domestic price pressures remain contained despite broader global volatility.
The composition of the May data highlights a divergence between goods and services.
While consumers faced higher prices for food and other retail items, these increases were largely neutralized by a softening in the services sector.
This dynamic mirrors trends seen in other advanced economies, where cooling service costs have helped offset energy and goods-driven inflation.