Statue of Merion in Singapore’s Central Business District on Tuesday, July 8, 2025.
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Singapore’s title inflation remained stable at 0.8% in June and has been at its lowest level for four years.
Inflation figures were below 0.9% expected by economists and ahead of monetary policy decisions in late July.
Core inflation lowered the price of private transport and accommodation, and remained the same at 0.6%.
The soft inflation figures provide Singapore’s monetary power with a path to mitigate its monetary policy to support growth in the uncertain trade environment.
In it The most recent annual report was released on July 15Singapore’s Monetary Authority noted that core inflation “substantially fell below 1% in the first five months of the year, lower than expected.”
“Core inflation is expected to average 0.5% – 1.5% over the full year of this year, down from 2.8% in 2024,” MAS said.
Although Singapore released GDP growth of 4.1% and 4.3% in the first and second quarters of this year, MAS also maintained its forecast of 0%-2% GDP growth for the whole year.
Analysts from Bank of America said in a July 16 note that MAS appears to be more concerned about the impact of global uncertain global growth background on domestic outlook.
“During the 2H25 period, MAS expects domestic growth to be ‘lower’, with global consumption and investment softening in the coming months, and tariffs will hit domestic production and exports with lagging restrictions,” the analyst added.
Other experts also told CNBC in early July Singapore’s economy may slow down as preload exports grow into the second half of the year.
“Singapore’s export-oriented service sector will retreat and manufacturing activity will continue to struggle,” said Shivaan Tandon, a market economist in capital economics.
Singapore’s economy depends to a large extent on exports. World Bank’s digital display of export composition 178.8% of the city’s GDP In 2024.
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