Singapore CPI climbs to a near 1-year high in October, exceeding estimates

Singapore’s inflation rate rose for the second straight month, year-on-year, with price growth in October rising to the highest level in almost a year and beating analysts’ expectations.

After hitting a four-year low in August, consumer prices rose 1.2% – the highest level since August 2024 – compared with the average 0.9% estimate of economists polled by Reuters and the 0.7% rise in September.

The city-state’s core inflation rate – which does not include accommodation and private transport prices – rose to 1.2%, up from 0.4% and compared with the 0.7% expected in the Reuters poll.

On a monthly basis, the CPI remained flat, with core inflation reaching 0.5% compared to the previous month.

The main reason for inflation was a 3.4% increase in transport prices coupled with a rise in core inflation. Health care costs also rose by a sharp 4%.

The Ministry of Trade and Industry said that the increase in core inflation is due to higher inflation in areas such as services, food and retail, as well as a slight decline in electricity and gas prices.

Singapore inflation data comes on Friday It raised its forecasts for economic growth to 4% from 1.5% to 2.5%, as strong GDP numbers were recorded in the third quarter.

The economy grew 4.2% in the third quarter from a year earlier, beating estimates and extending the second quarter’s 4.7% expansion. Singapore’s Ministry of Trade and Industry said global economic conditions have become more resilient than expected, but warned that growth is likely to slow in 2026 as US tariffs weigh on global demand.

Singapore’s exports to the United States are Subject to a base tariff of 10%Although there is a country Trade deficit With the United States as well as a free trade agreement dating back to 2004.

The country’s economy relies heavily on trade World Bank data It shows that Singapore has a trade-to-GDP ratio of over 320% in 2024.

In the third quarter, Singapore recorded A 3.3% decline In non-oil domestic exports, or NODX, on an annual basis, affected by weak pharmaceutical and petrochemical exports.

But in October, the value of NODX soared 22.2% compared to the previous yearDriven by exports of gold and non-cash electronic products.

The Monetary Authority of Singapore expected inflation to range between 0.5% to 1% in 2025.

The Monetary Authority of Singapore kept monetary policy unchanged at its October meeting, saying Singapore’s economic growth was stronger than expected.

— CNBC’s Annick Pauw contributed to this report.