Overview

• Core inflation decreased to 0.6% year on year in May, reversing the rise to 0.7% in April
• The drop in core inflation was driven mainly by lower food inflation, which eased to 1.1% as non-cooked food prices rose more slowly
• Headline inflation eased to 0.8% in May from 0.9% in April as food and private transport costs increased at a slower pace
• MAS and MTI maintain their 2025 average inflation forecast at 0.5% to 1.5% citing moderate risks to imported inflation
• Easing nominal wage growth and sustained government subsidies continue to dampen services inflation in Singapore