Singapore’s headline and core inflation rates held steady in April, with both metrics remaining at 2.7% and 3.1%, respectively, according to data released by the Department of Statistics on May 23. These figures are consistent with economists’ expectations, who had predicted no change from March.

The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) noted that while private transport costs increased, this was balanced out by a decrease in accommodation inflation. On a month-on-month basis, the overall consumer price index (CPI) rose by 0.1%, while core CPI increased by 0.4%.

Despite these stable inflation figures, MAS and MTI have maintained their full-year inflation forecasts. They expect headline and core inflation to average between 2.5% and 3.5%. When excluding the temporary impacts of the goods and services tax hike, the anticipated range for both metrics is adjusted to between 1.5% and 2.5%.

In contrast, some private-sector economists have adjusted their full-year forecasts downward. UOB’s associate economist Jester Koh has revised the headline inflation projection to 2.8% from 3%, while OCBC’s chief economist Selena Ling has lowered her estimate to a range of 2.8% to 3%, down from 3% to 3.1%. Ling attributed this adjustment to stable inflation rates so far this year and the absence of lasting impacts from ongoing geopolitical tensions in the Middle East affecting energy prices.

April’s inflation report indicated mixed trends across different CPI categories. Private transport costs rose by 0.3% year-on-year, reversing a decline from the previous month, as car prices fell at a slower pace and petrol prices increased more sharply. Conversely, accommodation inflation eased to 3.5%, reflecting slower growth in housing rents and maintenance costs.

Within core inflation components, electricity and gas costs surged by 7.6%, driven by significant increases in utility tariffs. Retail and other goods inflation also saw a rise to 1.6%, influenced by higher water prices and increases in personal items, while clothing and footwear prices declined less than in previous months.

On the flip side, services inflation dipped to 3.5%, attributed to a more substantial decrease in airfares and a milder rise in holiday expenses. Additionally, food inflation decreased to 2.8%, primarily due to a smaller uptick in prices for non-cooked food and food services.

DBS economist Chua Han Teng described the continued slowdown in food inflation as “encouraging.” He noted that imported price pressures remain manageable, supported by stable global food prices and a robust Singapore dollar. This trend has contributed to the moderation in food services pricing as well.