Core inflation up in April, ending 6 months of year-on-year declines

But any further rise in Singapore consumer prices is expected to stay modest in 2025

- Sheila Chiang

Singapore's core inflation edged up in April, snapping six straight months of year-on-year declines, but the Government and economists see any further rise in consumer prices staying modest in 2025 given the big uncertainties in global trade.

Core inflation climbed to 0.7 per cent year on year, from a four-year low of 0.5 per cent in March, the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) said on May 23.

It came in higher than the 0.5 per cent forecast by economists in a Bloomberg survey.

Core inflation excludes private transport and accommodation costs to better reflect the expenses of households here.

It rose in April as bigger increases in the prices of services and food more than offset lower retail and other goods inflation.

OCBC Bank chief economist Selena Ling said the higher-than-expected bump in April should not be too alarming, given the current heightened tariff uncertainties.

"Given the lack of clarity on US tariffs, even with the ongoing trade negotiations, especially pertaining to the eventual outcome of the 90-day China trade truce, the disinflation path is likely still bumpy," she said.