Singapore’s annual inflation rate remained steady at 0.8% in June 2025, consistent with figures from the previous month but slightly falling short of market anticipations which predicted a rise to 0.9%. This figure marks the lowest inflation level since February 2021, reflecting a modest decline in various sectors.
Specifically, food prices saw a slight decrease to 1.0% from 1.1% in May, while housing and utilities dropped to 0.9% from 1.0%. Education inflation remained stable at 0.5%. Conversely, certain sectors experienced worsening deflation: household durables and services fell by 0.4%, information and communication showed a decrease of 2.4%, and recreation, sport, and culture recorded a decline of 2.6%.
In contrast, transportation costs continued their upward trend, rising to 2.0% compared to 1.7%, and health expenditures increased to 2.8% from 2.7%. Notably, clothing and footwear prices rebounded significantly to 2.2%, recovering from a decline of 3.3% in the previous month.
On a monthly comparison, the consumer price index (CPI) experienced a slight decrease of 0.1% in June, reversing the 0.7% increase recorded in May. Additionally, the annual core inflation rate remained at 0.6%, which also fell short of market predictions expecting a rise to 0.7%.
This steady inflation may indicate a cautious but resilient economic environment, reflecting stability in certain sectors while presenting opportunities for growth in areas like transportation and health. The situation highlights the delicate balance that needs to be managed in the economy, as policymakers navigate between encouraging growth and containing inflation. Despite some sectors showing signs of deflation, the overall outlook remains stable, which could foster a sense of optimism for recovery and growth in the coming months.