FX.co ★ Singapore Inflation Rate at 4-Year Low

In February 2025, Singapore experienced a decline in its annual inflation rate, which decreased to 0.9% from 1.2% observed in January. This figure was slightly below market forecasts of 0.95% and represents the lowest inflation rate since February 2021. The decrease was attributed to a more moderate rise in food prices, which slowed to 1% from January's 1.5%, and transport costs, which also eased to 1.8% from 3.1%. Meanwhile, the inflation rate for housing and utilities remained steady at 1.4%.

Moreover, the deflation intensified in the sectors of recreation and culture, with rates declining further to -1.1% from -0.7%, and miscellaneous goods and services, which saw prices drop to -0.5% compared to a previous 0.2% increase. Conversely, there was an acceleration in costs related to health, rising to 1.8% from 1.5%, and education, which edged up to 0.4% from 0.1%. Deflation showed signs of easing in clothing and footwear, improving from -2.3% to -0.9%, as well as in household durables and services, which improved to -0.3% from -0.5%.

On a month-to-month basis, consumer prices saw an increase of 0.8% in February 2025, recovering from a 0.7% decline the previous month. Additionally, the annual core inflation rate experienced a slight decrease, dropping to 0.6% from 0.8% in January 2025, marking the lowest point recorded since June 2021.