Overview

• Both readings came in below economists’ forecasts, with core at 0.5% versus 0.6% expected and headline at 0.6% versus 0.7%.
• MAS and MTI attributed the easing to lower prices for retail goods and a sharper decline in electricity and gas costs.
• Food inflation edged up to 1.1% and private transport rose to 2.1%, while accommodation inflation slowed to 0.5%.
• Core CPI fell 0.1% from June, and overall consumer prices also declined on a month-on-month basis.
• Officials maintained their 2025 average inflation outlook of 0.5% to 1.5% after holding policy on July 30, noting risks from geopolitical shocks and the possibility that softer growth keeps inflation subdued.