Singapore announced a smaller-than-anticipated increase in consumer prices for April, which stood at 1.8 percent, attributed to a reduced rise in inflation for services, retail, and other goods.
Core inflation, excluding the costs of private transport and lodging, stood at 1.4 percent, falling short of the anticipated 1.7 percent.
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Singapore's trade ministry and monetary authority stated that the imported cost pressures for the city-state were anticipated to increase and expand in the upcoming months.
The Monetary Authority of Singapore anticipates that headline and core inflation will range from 1.5 percent to 2.5 percent in 2026.
Zavier Wong, a market analyst from the trading platform eToro, referred to the reading as “a slight positive surprise,” noting that with advancements in peace talks in the Middle East and recent declines in oil prices, there exists a “realistic opportunity for some imported cost easing” later this year.
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“As higher energy and other input costs arising from the developments in the Middle East pass through global supply chains, they will raise production and transport costs for a wider range of Singapore’s imported goods and services,” the authorities said in a joint statement.
Earlier in the day, Singapore significantly upgraded its first-quarter GDP growth to six percent, increasing from 4.6 percent in preliminary estimates, exceeding Reuters forecasts of 5.1 percent.
The nation’s trade and industry ministry stated that Singapore's annual growth will range from two percent to four percent in 2026, due to energy-related disturbances in the Strait of Hormuz. In April, the MAS adjusted its monetary policy for the first time in nearly three years in response to the inflation forecast.
In contrast to many countries, Singapore does not rely on interest rates for monetary policy management; rather, it steers the Singapore dollar within a policy band relative to a trade-weighted currency basket. The Singapore dollar is regulated within a defined policy band, the specific limits of which are not made public.
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Official statistics indicated that private transport inflation increased from 6.6 percent to 8.1 percent, due to higher rises in petrol and vehicle prices. Electricity and gas prices decreased at a reduced rate, from -4.3 percent in March to -3 percent in April, because of a minor drop in electricity prices.
Accommodation inflation rose from 0.3 percent to 0.4 percent in April attributed to a greater rise in housing rents, according to MAS and MTI. Food inflation remained steady at 1.6 percent, with inflation for non-cooked items and food services in April mirroring that of the prior month.
Inflation for retail and other goods increased at a reduced rate - from 1.8 percent in March to 1.5 percent in April - due to a decline in water price inflation during April. In April, services inflation decreased from 2.1 percent to 1.5 percent because of reduced health insurance expenses and decreased prices for telecommunication services.