- Singapore’s inflation slowed sharply in 2025, with consumer prices rising 0.9%, down from 2.4% in 2024, showing easing cost-of-living pressures.
- Price increases remained mild across all income groups, though higher-income households felt slightly more pressure, mainly due to higher motor car and health insurance costs.
Singapore’s inflation continued to cool in 2025, with consumer prices rising at a much slower pace compared with the previous year.
According to the latest data released by the Singapore Department of Statistics, the Consumer Price Index (CPI) for all items increased by 0.9% in 2025, sharply lower than the 2.4% rise recorded in 2024.
The slower pace reflects moderating price increases across key spending categories, even as certain costs such as transport and healthcare remained elevated.
Inflation remains stable in the second half of the year
Inflation was also steady in the second half of 2025. From July to December, CPI-All Items rose 0.9% year-on-year, unchanged from the first half of the year.
This indicates that price growth has largely stabilised after easing significantly from the highs seen in 2022 and 2023.
By household income group, inflation remained relatively contained:
- The lowest 20% income group recorded inflation of 0.4%
- The middle 60% saw prices rise by 0.9%
- The highest 20% income group experienced the fastest increase at 1.2%
The data suggests that while inflation was mild overall, price pressures varied depending on spending patterns across income groups.
Excluding housing rentals, inflation still subdued
When excluding imputed rentals for housing a commonly used measure to better reflect out-of-pocket household expenses inflation remained moderate. For the full year 2025, CPI excluding imputed rentals rose:
- 0.5% for the lowest-income group
- 0.9% for the middle-income group
- 1.4% for the highest-income group
This reinforces the view that inflationary pressures were generally contained, even after accounting for housing-related adjustments.
What drove prices higher in 2025
Despite the overall slowdown, several categories continued to push prices higher throughout the year. The main contributors to inflation across all income groups were:
- Health insurance
- Motor cars
- Food
- Accommodation
- Bus and train fares
- Water supply
Among these, motor car prices had a particularly strong impact on higher-income households, as transport accounts for a larger share of their overall expenditure.
Rising insurance-related costs also remained a key concern, especially for households facing higher healthcare expenses.
Falling costs help offset inflation
At the same time, increases in consumer prices were partly offset by declines in several areas.
Electricity costs, as well as prices in information and communication services, fell during the year. Holiday expenses were also lower, helping to ease overall cost-of-living pressures.
These offsetting factors played a significant role in keeping headline inflation below 1%, even as selected essential items continued to see price increases.
A sharp slowdown from 2024 levels
The contrast between 2025 and 2024 is notable. In 2024, inflation was driven by higher housing-related costs, utilities, and services as the economy adjusted to post-pandemic conditions. The slowdown in 2025 suggests that earlier price shocks have largely worked their way through the system.
For policymakers and households alike, the easing trend offers some relief, although officials continue to monitor cost pressures in areas such as healthcare and transport.
While inflation in Singapore has moderated significantly, the data shows that cost pressures have not disappeared entirely. Spending patterns, global energy prices, and transport-related costs will continue to shape inflation trends going forward.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri
