Singapore inflation forecast 2027: will prices keep rising next year?
You're probably sketching next year's spending by now. In a global Reuters poll published on 27 October, economists raised their 2027 inflation forecasts for 31 of the 50 economies they cover. Closer to home, MAS's Singapore inflation forecast for 2027, set out on 14 October, has prices rising 1.5% to 2.5% on average next year. MAS expects core inflation to ease more clearly from mid-2027. Here's why economists are more worried, where you'll feel higher prices first and what you can check this week.
What did the economists find this month?
Economists now expect inflation to stay high in much of the world well into 2027.
More than 500 of them took part in the Reuters poll in October. They raised their 2027 inflation forecasts for 31 of the 50 economies in it, and their growth forecasts for 23.
You'll find rich countries on the list too. Forecasts went up for 15 of the 21 developed economies, where prices usually rise slowly. That's a sign the worry has spread to places that normally see low inflation.
Here's how far the 2027 forecast has climbed over the last three quarterly polls in Britain, the euro zone, the US, India and Brazil.
| Economy | Rise in the 2027 forecast |
|---|---|
| Britain | 0.7 percentage points |
| Euro zone | 0.5 percentage points |
| Brazil | 0.5 percentage points |
| India | 0.4 percentage points |
| United States | 0.2 percentage points |
Why are economists more worried now?
The fear is that higher prices spread from fuel into everything else you buy, and stay there.
Oil kicked it off. Crude has stayed above US$100 a barrel since 7 October, and last week it passed US$117, its highest in six months. That's more than 60% up in the almost eight months since the US-Israeli war with Iran started.
Is it still just about oil? Not quite. Economists are now more worried that pricier energy seeps into other prices and sticks, and early signs of that have started to show.
Strong growth is the other part. More than US$1 trillion has gone into AI around the world since last year, and that's kept some economies going. The poll now has the world growing 3.0% this year and 3.2% in 2027, up from 2.9% and 3.1% in July.
That's a change from the April and July polls, which pointed to high inflation with weak growth. This one points to high inflation with firmer growth.
So, will prices in Singapore keep rising in 2027?
Yes, though MAS expects the rise to slow over 2027.
MAS's forecast, from its 14 October statement, has both core and headline inflation averaging 1.5% to 2.5% next year. It expects core inflation to ease more clearly from mid-2027.
Headline inflation covers everything in the price basket. Core inflation leaves out accommodation and private transport. Government supply policies can sway those prices a lot, and they jump around.
You've probably felt prices pick up this year. Core inflation went from 1.5% in the second quarter to 2.1% in July and August, then eased to 2% in September.
Why the rise? Higher import costs reached more of what you buy. Electricity and gas tariffs stepped up, and fuel-heavy transport services stayed pricey.
Could 2027 turn out worse? It could. MAS sees the risks tilted towards higher inflation, since a sharp jump in world energy or food prices that doesn't let up could push our import costs above its forecast. It could go the other way too, if energy shipments from the Middle East recover faster than expected.
For what households here expect prices to do, see our post on Singapore's inflation expectations survey.
Where are prices rising fastest here?
September's figures put your power bill and private transport at the top. They come from before the regulated household electricity tariff fell 10.4% on 1 October.
Here's how much more the same things cost you in September than a year before.
- Electricity and gas: up 8.7%
- Private transport: up 7.1%, as car prices kept rising, though more slowly
- Food: up 2.4%, from 2.3% in August
- Services: up 1.7%
- Retail and other goods: up 1.2%
- Accommodation: up 0.9%
- Everything together: up 2.2%
How much prices in Singapore rose in the year to September 2026
| Spending | September 2026 |
|---|---|
| Electricity and gas | 8.7% |
| Private transport | 7.1% |
| Food | 2.4% |
| Services | 1.7% |
| Retail and other goods | 1.2% |
| Accommodation | 0.9% |
Will your electricity bill go up again?
It could, from January. Fuel prices have climbed since September as tensions in the Middle East escalated, and the tariff is expected to rise next quarter if that lasts.
If you're on the regulated tariff, your rate runs about a quarter behind gas prices. Its energy cost part is set from the average natural gas price in the first two and a half months of the quarter before.
That lag is why your tariff fell 10.4% on 1 October, after gas was cheaper from July to mid-September. If your family's in a 4-room HDB flat, the average bill drops S$12.99 a month before GST.
Your food bill is the other one to watch. MAS's outlook has world and regional food prices picking up, as farm inputs cost more and bad weather hurts harvests.
Will interest rates go up too?
Around the world, they might. Most central banks have raised rates only a few times, or not at all, but more hikes could come if inflation spreads.
Money has already got tighter another way. A sell-off in bond markets around the world in recent months has pushed yields up.
MAS's October decision was about the Singapore dollar. On 14 October, it kept the currency strengthening at the same pace, to lean against pricier imports in the months ahead.
Our post on why MAS held its policy in October walks you through what that means for your bills.
Quick maths: is your pay keeping up?
Check your last raise against 2.2%, the rise in prices here over the year to September.
If your pay went up by less than that, your salary buys you a little less than it did a year ago.
Use our salary vs inflation calculator to put your raise next to price rises. For where your money goes each month, see our guide to the cost of living in Singapore.
This week, find your latest payslip and one from a year ago, and put both into the calculator.
Frequently asked questions
What is the inflation forecast for Singapore in 2027?
MAS's forecast, from its 14 October 2026 statement, has both core and headline inflation averaging 1.5% to 2.5% in 2027. Core inflation is set to ease more clearly from mid-2027, after it slipped to 2% in September 2026.
Why are economists raising their inflation forecasts for 2027?
Oil has stayed above US$100 a barrel since 7 October and is up more than 60% since the war with Iran began. Economists now worry that pricier energy spreads into other prices and stays.
Will Singapore's electricity tariff go up in January 2027?
It could. If you're on the regulated tariff, your rate fell 10.4% for October to December 2026, but fuel prices have climbed since September. If they stay high, the tariff is expected to rise next quarter.
What is the difference between core and headline inflation?
Headline inflation covers everything in the price basket. Core inflation leaves out accommodation and private transport. In September 2026, core inflation was 2% and headline inflation was 2.2%.
Sources
- CNA - High inflation to persist globally into next year, Reuters poll shows (27 October 2026)
- MAS - Monetary Policy Statement, October 2026 (14 October 2026)
- EconoTimes - Singapore core inflation eases to 2% as import risks persist (23 October 2026)
- SP Group - Electricity tariff revision for 1 October to 31 December 2026 (30 September 2026)
- MAS and METI - Consumer Price Developments in September 2026 (23 October 2026)
Keep exploring
- 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?
- Cost of living in Singapore 2026: what you actually spend each month
- 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.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).