Singapore’s inflation rate has risen at its slowest pace since February 2021, signaling a potential stabilization in the economy after years of post-pandemic volatility. According to the latest data released by the Monetary Authority of Singapore (MAS), the Consumer Price Index (CPI) increased by just 2.1% year-on-year in January 2025, down from 3.4% in December 2024. This marks the lowest inflation rate in nearly four years, driven by easing global supply chain pressures and lower energy costs.
The MAS attributed the slowdown to a combination of factors, including a stronger Singapore dollar, which has helped reduce import costs, and government measures to curb rising food and housing prices. Core inflation, which excludes private transport and accommodation costs, also fell to 1.8%, its lowest level since early 2021.
Economists suggest that the moderation in inflation could provide the central bank with more flexibility to support economic growth. However, they caution that external risks, such as geopolitical tensions and fluctuating commodity prices, could still pose challenges in the coming months.
Prime Minister Lee Hsien Loong welcomed the news, stating that the government remains committed to ensuring affordability for all citizens. “While we are encouraged by the slowdown in inflation, we will continue to monitor the situation closely and take necessary steps to safeguard our economy,” he said.
