Singapore’s core inflation rate remained unchanged at 1.4% in May, holding steady against private-sector economist forecasts that had pointed to an acceleration to 1.6%.
The data, released by the Monetary Authority of Singapore (MAS), indicates that underlying price pressures have not yet gained significant momentum, despite earlier warnings from authorities about potential future price hikes driven by rising energy costs.
The stability in the core rate was largely driven by a decline in services prices, which effectively counterbalanced rising costs for food and retail goods.
This offsetting dynamic suggests that while input costs are increasing, they have not yet fully transmitted to the broader consumer basket in a way that would force an immediate policy response.
The MAS has maintained its current monetary policy stance, and this data point reinforces the case for patience rather than preemptive tightening.
However, the report highlights a notable divergence within the data: private transport inflation saw the biggest jump in May, rising from 8.1% in April to 8.6%.