Singapore's Inflation Surges to Nine-Month High in October
Singapore, Monday, 24 November 2025.
Singapore’s inflation rate hit 1.2% in October, driven by rising food and transport costs, marking the highest level since January and exceeding expectations of 0.9%.
Inflation Drivers and Economic Implications
The surge in Singapore’s inflation rate to 1.2% in October 2025, marking a nine-month high, was primarily driven by significant increases in food and transport costs. Food prices saw their most considerable rise in six months at 1.2%, while transport costs increased by 3.4% [1][2]. These changes reflect broader economic pressures, with the Monetary Authority of Singapore and the Ministry of Trade and Industry noting that while imported costs are expected to continue decreasing, the pace will slow. This inflationary pressure is further compounded by a milder decline in electricity and gas prices, affecting core inflation metrics [3][4].
Impact on Economic Policy and Trade
This rise in inflation comes at a crucial time for Singapore’s economic policy. Despite the current inflationary pressures, the Monetary Authority of Singapore has maintained its monetary policy settings, forecasting core inflation to average around 0.5% for 2025, with headline inflation expected between 0.5% and 1.0% [5]. The Ministry of Trade and Industry has cautioned that growth may slow in 2026 due to external factors, including U.S. tariffs impacting global demand [6]. Singapore’s trade dynamics are pivotal, with non-oil domestic exports surging by 22.2% in October compared to the previous year, reflecting robust demand for electronic goods and non-monetary gold [1].
Future Projections and Economic Outlook
Looking ahead, experts anticipate that while inflation may remain elevated in the short term, administrative measures that have been tempering inflation could lessen in impact in the coming quarters [4]. Analysts also note that Singapore’s economic growth, which outpaced expectations at 4.2% in Q3 2025, may face headwinds as trade tensions persist, particularly with the U.S. maintaining a 10% tariff on imports from Singapore [1][5]. The trade-to-GDP ratio, which was over 320% in 2024, underscores the city’s vulnerability to external economic fluctuations [6].
Conclusion
In conclusion, Singapore’s current inflationary trend underscores the interconnectedness of global trade dynamics and domestic economic policies. As the country navigates these complexities, the focus will likely remain on balancing inflation control with sustaining economic growth. Policymakers will need to closely monitor both domestic and international developments to mitigate potential risks while capitalizing on opportunities for economic expansion [1][6].