Singapore core inflation surges to near two-year high as energy costs hit households

Singapore’s core inflation climbed to 1.6% year-on-year in June 2026, up from 1.4% in May, marking the highest reading since late 2024. The broader Consumer Price Index rose to 1.9% from 1.8% the prior month.

Record electricity tariffs lead the charge

Household electricity tariffs for the third quarter of 2026 hit a record 31.91 cents per kilowatt-hour before GST, representing a 17% jump from the previous quarter. Gas tariffs climbed 7.1% over the same period.

For a typical four-room HDB household, that translates to an estimated S$17.14 increase in monthly bills before GST.

The tariff adjustments trace back to disruptions in Middle East supply chains earlier in the year that pushed global energy prices higher. Those elevated costs only began filtering into Singapore’s regulated utility bills from July 2026, meaning the June inflation reading may actually understate the pressure building in the pipeline.

Economic forecasters project core inflation could reach 2.3% as soon as July 2026 as those tariff hikes fully register in consumer price data.

MAS tightens the screws

In its July 2026 policy review, MAS increased the appreciation pace of the Singapore dollar’s policy band, letting the local currency strengthen faster to make imports cheaper and help contain inflation.

MAS and the Ministry of Trade and Industry project both core and headline inflation to average between 1.5% and 2.5% for the full year, with both agencies flagging upside risks from potential further energy supply disruptions.

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