Singapore's key consumer price inflation rises 0.6 per cent in May

Headline inflation was 0.8% in annual terms in May, also matching the median poll forecast of 0.8 per cent

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Singapore's key consumer price gauge rose 0.6 per cent in May from a year earlier, official data showed on Monday, matching forecasts by economists.

The core inflation rate, which excludes private road transport and accommodation costs, was in line with a forecast rate of 0.6 per cent in a Reuters poll of economists.

It was the fifth consecutive month where the annual core rate was below 1 per cent.

DBS senior economist Chua Han Teng said that while inflation has remained subdued in 2025, he is monitoring upside risks from the conflict in the Middle East.

"Escalating tensions in the Middle East raise concerns about disruptions to global oil supplies, which could further drive up global crude oil prices, consequently increasing Singapore's energy import prices, as well as electricity and travel-related costs," he said.

While Iran has yet to retaliate against US attacks on its nuclear sites over the weekend, analysts remain concerned that it could choose to disrupt shipping through the Strait of Hormuz, affecting around a quarter of the world's oil supplies and 20 per cent of its liquefied natural gas. Singapore's growth outlook has already dimmed due to economic uncertainties from US tariffs. In April, the central bank loosened monetary policy for the second time this year and lowered forecasts for both core and headline inflation to 0.5 per cent-1.5 per cent.