Singapore's Inflation Holds Steady at 1.2% in November 2025

In November 2025, Singapore's inflation rate remained unchanged at 1.2%, matching the previous month's figure and falling short of analysts' expectations of 1.3%. This stability in the Consumer Price Index (CPI) was attributed to a balance between rising service costs and declining prices in other sectors, particularly electricity and retail goods. Core inflation, which excludes private transport and accommodation costs, also held steady at 1.2%, reflecting similar trends in the economy.

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The increase in service inflation, which rose to 1.9% from 1.8% in October, was driven by higher costs in point-to-point transport services and health insurance. Conversely, inflation for retail and other goods decreased, with notable declines in clothing and footwear prices. Electricity and gas costs saw a significant drop of 4.1%, contributing to the overall inflation stability. On a month-to-month basis, consumer prices increased by 0.2% after remaining flat in October.

The Straits TimesSingapore’s core, headline inflation hold steady at 1.2% in NovemberChannel News Asia - CNA

The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) have maintained their inflation forecasts for 2025, projecting core inflation at around 0.5% and headline inflation between 0.5% and 1%. For 2026, core inflation is expected to rise to between 0.5% and 1.5%. These forecasts consider various factors, including potential supply shocks from geopolitical developments and the impact of global demand fluctuations on imported costs.

The Straits TimesCNBCSingapore’s core, headline inflation hold steady at 1.2% in November

Market analysts have expressed that the current inflation data does not indicate strong domestic demand pressures. Zavier Wong, a market analyst at eToro, noted that the inflation trends reflect higher costs being passed on to consumers rather than a surge in demand. This perspective suggests that the MAS may have room to maintain its current monetary policy without immediate tightening. Additionally, Maybank economist Brian Lee highlighted upcoming administrative price increases, such as a 5% rise in public transport fares, which could influence future inflation rates.

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The MAS and MTI reiterated their commitment to monitoring inflation trends closely, emphasizing that while inflation has not dissipated, it is not behaving in a manner that necessitates immediate policy changes. They acknowledged the uncertainties surrounding the inflation outlook, particularly regarding potential tariff shocks and global oil price fluctuations.

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• “Price pressures are not exactly spreading, and neither are they accelerating in the parts of the basket that usually respond to improving confidence,” — Zavier Wong, Market Analyst at eToro

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• “We forecast core inflation to rise and average 1.3 per cent in 2026, with headline inflation averaging 1.4 per cent,” — Brian Lee, Economist at Maybank

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• “Supply shocks, including those stemming from geopolitical developments, could lift some imported costs abruptly.” — MAS and MTI Joint Statement

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Singapore's inflation landscape in November 2025 reflects a complex interplay of rising service costs and declining prices in other sectors. As the MAS and MTI project modest inflation growth in the coming years, the economic environment remains subject to various external factors that could influence these forecasts.

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