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Merlion Statue in the Central Business District of Singapore, Tuesday, July 8, 2025.
Bloomberg | Bloomberg | Gets the image
In July, Singapore’s inflation cooled down to a lower than expected, since this year the city state was drawn to slow growth.
It was lower than 0.7% expected by economists, and was below 0.8% in June.
Main inflation – depriving private transport and location – decreased to 0.5%, lower than 0.6% of the Reuters survey forecast.
Singapore’s monetary power said the decline in retail and other prices for goods led to cool inflation, as well as to reduce electricity and gas inflation.
Electricity and gas prices decreased by 5.6% per year, which is the highest decrease in the IPC basket, while private transport prices increased by 2.1% compared to the same period ago due to the increase in prices for the car.
The Central Bank said the inflation should remain “moderate” in the near future, citing prices for world crude oil, while hiking on commodity goods should also remain.
At the domestic level, the slow growth of the nominal wage and the increase in productivity “should contribute to moderation of units of workforce,” Mass said.
MAS in its annual report last month predicted that the main inflation on average would average from 0.5% to 1.5% in 2025, which is 2.8% in 2024.
“In the near future, inflation of imported goods facing Singapore should be modest against the background of slowing global demand.”
In January and April, the Central Bank already mitigated Singapore’s monetary policy to cope with weak growth. He warned that the “decline” in the world trade setting and the growth of trade tensions put the Singapore economy on the path of weaker growth and slower inflation.
On July 30, Mass predicted that Singapore’s economic growth would be moderate in the second half of the year, despite strong GDP In the first six months.
Singapore, which depends on the trade, also collided with the basic 10% of the “mutual” tariff for its US administration from the Trump administration, despite the fact that since 2004 he has conducted a trade deficit with the United States and has a free trade agreement.
Singapore has not received a “tariff letter” and has not yet come to a deal with the Trump administration.
