Singapore core inflation eases to 2% in September: what does it mean for you?

"So prices are finally coming down?" Not quite, because core prices still rose 0.1% from August to September. What eased is the pace: Singapore core inflation slowed to 2% in September, from 2.2% in August. Headline inflation dipped to 2.2%, while food went the other way and climbed to 2.4%. Here's what slowed, what didn't, and MAS and METI's outlook for your bills into 2027.

What does 2% core inflation actually mean?

It means your prices are still going up, just a bit more slowly. Core prices in September were 2% higher than a year before. In August, that gap was 2.2%.

1. 1Core inflation

   

   Before: 2.2%. Now: 2%

   Core prices still rose 0.1% from August to September.

2. 2Headline inflation

   

   Before: 2.3%. Now: 2.2%

   Lower core and private transport inflation pulled it down.

3. 3Food

   

   Before: 2.3%. Now: 2.4%

   Groceries and meals out both rose faster.

4. 4Accommodation

   

   Before: 0.8%. Now: 0.9%

   Housing rents went up at a faster pace.

Core inflation leaves out two groups of your costs because their prices swing a lot. One is accommodation, where your rent sits. The other is private transport, where car prices sit.

Headline inflation, the Consumer Price Index for all items, keeps both groups in. It eased to 2.2% from 2.3%, because core inflation and private transport inflation both came down. It leaves out buying a home or shares, plus income tax.

Our guide to Singapore's inflation rate in 2026 explains headline and core inflation in more detail.

What slowed down in September?

Services inflation fell to 1.7% from 2%, which helped pull core inflation down. Point-to-point transport fares, like taxis, rose by less than in August, and telco service prices fell by more.

Retail and other goods slowed even more, to 1.2% from 1.8%. Furniture prices fell, with clothes rising in price more slowly.

Private transport sits outside core inflation, but it eased too, to 7.1% from 7.5%. If you're shopping for a car, prices are still rising, only more gradually.

Here's how each group you spend on moved between the two months:

Inflation by spending group, year on year

Spending group	August 2026	September 2026
Core inflation	2.2%	2.0%
Headline inflation	2.3%	2.2%
Services	2.0%	1.7%
Retail and other goods	1.8%	1.2%
Food	2.3%	2.4%
Electricity and gas	8.7%	8.7%
Private transport	7.5%	7.1%
Accommodation	0.8%	0.9%

Why does your grocery bill still feel heavier?

Food inflation went the other way, up to 2.4% from 2.3%. Prices of groceries and of meals out both climbed faster.

If you rent, there's more: housing rents went up faster, so accommodation inflation edged up to 0.9% from 0.8%.

If most of your money goes on food and rent, those are the two lines for you to watch, more than the core figure.

The catch: why is electricity still up 8.7%?

Electricity and gas inflation held at 8.7% in September, the same as in August. Prices rose at about the same pace in both months.

It comes down to how the regulated electricity tariff is set. Each quarter's tariff is based mostly on the average natural gas price over the first two and a half months of the quarter before.

Global energy prices spiked from April to mid-June 2026. That spike is why the tariff went up for the third quarter, July to September.

Will your bills keep climbing into 2027?

Yes, for a few more quarters, in MAS and METI's outlook. Core and headline inflation stay slightly high over that time, then ease more clearly from mid-2027.

The cost of what Singapore imports should stay firm in the near term. Energy prices have risen again and look set to stay high for now. Food prices around the world and in the region should also pick up, as inputs cost more and bad weather hurts food production.

At home, price pressures should stay mild, because labour costs for each unit of work in services look contained as productivity keeps rising. Bigger government subsidies, such as for healthcare and education, should also hold services inflation down.

Imported inflation should then ease over 2027, while the effects of short-term supply problems fade. Here are MAS and METI's forecasts for each full year:

• Core inflation in 2026: 1.5% to 2%
• Core inflation in 2027: 1.5% to 2.5%
• Headline inflation in 2026: around 2%
• Headline inflation in 2027: 1.5% to 2.5%

Real talk: could prices rise faster than that?

Yes, and the risks in MAS and METI's outlook lean that way. One is a sharp jump in global energy or food prices that lasts. That could push up what Singapore pays for imports by more than forecast.

Prices at home could also stay high if the AI boom's knock-on effects spread and labour costs climb faster.

On the other side, global interest rates above what's expected, or less AI investment, could slow growth and so slow inflation. Energy output and shipping from the Middle East could also recover sooner than expected, and pull energy prices down further.

Our guide to MAS's October 2026 policy decision covers why your bills are still going up.

This week, use our salary vs inflation calculator to check whether your last pay rise kept up with 2.2% inflation.

Frequently asked questions

What is core inflation in Singapore?

It's the inflation measure that leaves out accommodation and private transport, the groups where rents and car prices sit. In September 2026 it was 2%, down from 2.2% in August.

Is headline inflation higher than core inflation right now?

Yes. In September 2026, headline inflation was 2.2% and core inflation was 2%. Headline inflation also counts private transport, at 7.1% that month, and accommodation, at 0.9%.

Why is electricity still costing more than last year?

Electricity and gas inflation was 8.7% in September 2026, the same as in August. The regulated tariff for July to September went up after global energy prices spiked from April to mid-June 2026.

How long until inflation in Singapore eases?

MAS and METI's outlook has core and headline inflation staying slightly high over the next few quarters, then easing more clearly from mid-2027. Their forecast for both in 2027 is 1.5% to 2.5%.

Sources

• CNA - Singapore's core inflation eases to 2% in September on lower services, retail prices (23 October 2026)
• MAS and METI - Consumer Price Developments in September 2026 (23 October 2026)
• Xinhua - Singapore core inflation eases to 2 pct in September (23 October 2026)
• AsiaOne - Singapore core inflation dips to 2% in September from 2-year high in August (23 October 2026)

Keep exploring

• Singapore's Inflation Rate in 2026: What It Is and What to Do
• MAS holds monetary policy in October 2026: why your bills are still going up
• Singapore inflation expectations hold at 3.4%: what does it mean for your budget?
• IMF cost of living warning: what does it mean for your monthly budget?
• Singapore inflation rate calculator
• Lifestyle inflation calculator

This is general financial information for Singapore, not personal financial advice. Figures change, so verify current rates against the official sources above before acting. See our full disclaimer.