Singapore Inflation Stays Muted in May as Core CPI Misses Forecasts Ahead of MAS Review

Singapore’s inflation rate remained subdued in May 2026, with both headline and core consumer price inflation coming in below market expectations, reinforcing expectations that the Monetary Authority of Singapore (MAS) may maintain its current monetary policy stance at its upcoming July review.

According to official data released on Tuesday, Singapore’s headline Consumer Price Index (CPI) inflation held steady at 1.8% year-on-year in May, unchanged from April and below economists’ forecast of 2.0%. On a monthly basis, consumer prices increased 0.7%, reversing the 0.3% decline recorded in April.

Core inflation, a key measure closely monitored by the MAS that excludes accommodation and private transport costs, remained unchanged at 1.4% year-on-year. The figure also fell short of expectations for a 1.6% increase and matched the reading from the previous month, signaling that underlying inflationary pressures continue to be contained.

The latest inflation data showed mixed price trends across different sectors of the economy. Services inflation eased to 1.3% in May from 1.5% in April, primarily due to a sharper decline in telecommunication service costs. The moderation in services prices helped offset stronger inflation in other categories.

Food inflation accelerated to 1.8% from 1.6%, reflecting higher costs for certain consumer staples. Accommodation inflation edged up to 0.5% from 0.4%, while private transport inflation increased to 8.6% from 8.1%, driven by rising vehicle-related expenses.

Despite the softer-than-expected inflation readings, the MAS and Singapore’s Ministry of Trade and Industry maintained their outlook that both headline and core inflation will average between 1.5% and 2.5% in 2026. Authorities noted that upside risks remain due to elevated global energy prices and the possibility of supply chain disruptions affecting imported costs.

The inflation report arrives ahead of the MAS monetary policy meeting in July, where policymakers are widely expected to leave policy settings unchanged while continuing to assess domestic demand conditions and external inflation pressures. Market participants will also closely monitor the USD/SGD exchange rate and broader economic indicators for clues on Singapore’s monetary policy direction in the second half of the year.