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, a 17% jump from the previous quarter. Gas tariffs climbed 7.1% over the same period. For a typical four-room HDB household, this translates to an estimated S$17.14 increase in monthly bills before GST. The tariff adjustments stem from disruptions in Middle East supply chains earlier in the year, which pushed global energy prices higher. These elevated costs began filtering into Singapore’s regulated utility bills from July 2026, meaning the June inflation reading may understate ongoing pressure. Economic forecasters project core inflation could reach 2.3% by July 2026 as tariff hikes fully register. In response, MAS tightened monetary policy by increasing the appreciation pace of the Singapore dollar’s policy band, strengthening the local currency 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 agencies flagging upside risks from potential further energy supply disruptions.