SECTORS
Services inflation in October rose to 1.8 per cent in October from 0.3 per cent the month before.
This was due to a faster pace of increase in health insurance costs, as well as a rise in healthcare services costs and holiday expenses, said the Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore (MAS).
Electricity and gas inflation fell less steeply than in September, because of a smaller decline in electricity prices.
Inflation for food prices increased marginally to 1.2 per cent in October, owing to a faster increase in non-cooked food prices.
Retail and other goods inflation ticked up to 0.4 per cent from 0.3 per cent the month before on account of a rise in the prices of clothing and footwear and personal effects.
Private transport inflation was higher at 3.8 per cent from 3.7 per cent in September because of a steeper increase in car prices, while accommodation inflation slightly declined from 0.4 per cent to 0.3 per cent due to a slower pace of increase in housing rents.
OUTLOOK
Maintaining their outlook from last month, MAS and MTI said that Singapore’s imported costs should continue to decline, albeit at a slower pace in the months ahead.
They projected global crude oil prices to fall more gradually in 2026 compared to 2025, with regional inflation picking up modestly after the weak outturns this year.
"On the domestic front, administrative factors temporarily dampening inflation are expected to continue tapering over the coming quarters," said MAS and MTI.
"Unit labour cost growth should begin to increase as productivity growth normalises, while private consumption demand is likely to remain steady."
Reflecting these factors, MAS and MTI said core inflation is projected to come in at around 0.5 per cent in 2025 before rising to 0.5 to 1.5 per cent in 2026.
CPI-All Items inflation is also expected to average 0.5 to 1 per cent in 2025 and 0.5 to 1.5 per cent in 2026.
MAS and MTI warned that the inflation outlook is subject to uncertainties, as supply shocks - including those stemming from geopolitical developments - could lift some imported costs abruptly.
“However, a sharper-than-expected weakening in global demand could keep core inflation lower for longer,” they said.
“Another significant decline in global oil prices could also temporarily tamp down the pace of price increases.”
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