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Core Inflation Hits 0.3%, Signals Economic Shift Ahead

9/24/2025

48 11 Full Breakdown

Summary

Story summary

Core inflation fell to 0.3% in August 2025, lowest since February 2021.
Headline inflation at 0.5%, below 0.6%; Monetary Authority of Singapore (MAS) maintains a full-year forecast of 0.5%–1.5%.
Analysts expect core inflation to dip to 0.1% in September 2025, with GDP growth forecast at 1.5%–2.5%.
Private transport inflation rose to 2.4% due to higher car prices and certificate-of-entitlement premiums.

History

Historical Context

Singapore's economy contracted by 2.2% in 2015, prompting the Monetary Authority of Singapore (MAS) to introduce stimulus measures. Following the COVID-19 pandemic, core inflation peaked at 2.4% in 2021 before dropping to 0.3% in August 2025, indicating ongoing economic adjustments. These fluctuations may influence MAS's monetary policy, affecting consumer spending and investment strategies in the future.

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Story summary

Core inflation fell to 0.3% in August 2025, lowest since February 2021.
Headline inflation at 0.5%, below 0.6%; Monetary Authority of Singapore (MAS) maintains a full-year forecast of 0.5%–1.5%.
Analysts expect core inflation to dip to 0.1% in September 2025, with GDP growth forecast at 1.5%–2.5%.
Private transport inflation rose to 2.4% due to higher car prices and certificate-of-entitlement premiums.

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