Singapore's core inflation rate eased to 1.4% [1] in April 2024, down from 1.7% [2] in March.
The decline in core inflation suggests a cooling of price pressures for residents, though specific sectors continue to see sharp increases that could offset overall gains.
Headline inflation remained steady at 1.8% [3] during the same period. While the broader consumer price gauge slowed, the cost of private transport jumped 8.1% [4]. This spike was driven primarily by higher petrol and car prices.
Data released on May 1, 2024, indicates that lower inflation in retail and services helped balance the higher costs of accommodation and transport. These offsetting trends contributed to the overall dip in the core rate.
Economists said the trend may not remain downward. Analysts said imported cost pressures are expected to increase in the coming months — a shift largely attributed to spillovers from the conflict in the Middle East.
Because Singapore relies heavily on imports for basic goods and energy, global volatility directly impacts local prices. The current stability in headline inflation may be temporary if regional tensions continue to drive up the cost of shipping and raw materials.
“Singapore's core inflation rate eased to 1.4% in April 2024”
The divergence between falling core inflation and rising transport costs highlights Singapore's vulnerability to external shocks. While domestic services and retail are stabilizing, the economy remains exposed to global energy markets and geopolitical instability, which may reverse recent gains in price stability.
