Singapore Core Inflation Rises to 2% in July as Electricity Prices Surge

Singapore Economic Update • 25 August 2026

Core Inflation Reaches Fastest Pace Since 2024

Singapore’s core inflation increased to 2% year-on-year in July, compared with 1.6% in June.

Core inflation excludes private transport and accommodation costs and is commonly used to give a clearer picture of the underlying cost pressures faced by households.

Overall inflation also increased, reaching approximately 2.2% in July.

Electricity Prices Were a Major Driver

One of the biggest contributors to the increase was a sharp rebound in electricity and gas prices.

Electricity and gas costs had fallen in June but rose strongly in July following an increase in regulated electricity tariffs.

Higher global energy prices can eventually feed into transportation, business operating costs and household utility bills.

Food and Services Costs Also Increased

Food inflation moved higher as the cost of both food services and non-cooked food increased.

Services inflation also strengthened, supported by higher airfares and point-to-point transport costs.

These increases affect consumers directly but can also raise operating expenses for businesses, particularly those in food and beverage, hospitality, retail and service industries.

What Could Happen Next?

Singapore’s inflation outlook will continue to depend heavily on global energy prices, food costs, geopolitical developments and domestic demand.

While some energy pressures may ease if oil and gas prices stabilise, fresh supply disruptions or geopolitical tensions could push costs higher again.

The Monetary Authority of Singapore and Ministry of Trade and Industry have maintained their broader inflation forecasts, while economists continue to watch whether the latest increase develops into a more persistent trend.