What is inflation?

The inflation rate is the 12-month percentage change in the Consumer Price Index. Singapore’s headline rate was 2.2% in July 2026, up from 1.9% in June, with MAS Core Inflation at 2.0%.

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Singapore · July 2026 · headline CPI
2.2%
+0.3 pts
MAS Core2.0%
Previous1.9%
2025 average0.9%
MAS 2026 forecast1.5–2.5%
Headline CPI2.2%July 2026
MAS Core2.0%July 2026
Previous month1.9%June 2026
2025 average0.9%Full year
10-year average1.74%2016–2025
MAS 2026 forecast1.5–2.5%Headline and core
On this pageWhat it measuresWorked exampleWhat it means for youMisconceptionsRelated termsSources

Key takeaways

  • Singapore’s headline inflation was 2.2% in July 2026; MAS Core Inflation was 2.0%.
  • The rate is the 12-month change in the Consumer Price Index, a basket of about 6,800 brands and varieties priced monthly by SingStat.
  • MAS forecasts 1.5–2.5% for 2026, after 0.9% in 2025, and manages inflation through the Singapore dollar exchange rate rather than a policy interest rate.
  • At 2.2% a year, SGD 1,000 in cash buys about SGD 804 worth of today’s goods in ten years.
  • A savings rate below the inflation rate is a real-terms loss even though the balance grows, which is why the calculators on this site show returns after inflation.
Definition

What the inflation rate measures

Each month SingStat prices a fixed basket of about 6,800 brands and varieties at about 4,500 outlets — hawker meals, MRT fares, rent, school fees — and expresses the cost as the Consumer Price Index (2024 = 100). The headline inflation rate is the percentage change in that index against the same month a year earlier.

CPI-All Items (headline)2.2%Every item in the basket, weighted by how much resident households spend on it. The figure quoted in the news and in wage guidelines.
MAS Core Inflation2.0%Headline minus accommodation and private road transport, the two components most shaped by COE prices and rents. The measure MAS steers policy on.
Month on month−0.2%Change in the index from June to July. Noisy month to month; useful for turning points, not for planning.

MAS Core Inflation carries as much weight as the headline in Singapore. In July 2026 the MAS/MTI release attributed the rise in core inflation to electricity and gas, services and food, and the rise in headline inflation to higher accommodation inflation on top of that.

Worked example

What 2.2% inflation does to SGD 1,000

Inflation compounds in reverse. At a steady 2.2% a year, cash buys progressively less: something costing SGD 1,000 today costs about SGD 1,243 in ten years. The second column uses the 2016–2025 average of 1.74%.

AfterAt 2.2%At 1.74%
1 yearSGD 978SGD 983
2 yearsSGD 957SGD 966
5 yearsSGD 897SGD 917
10 yearsSGD 804SGD 842

Real vs nominal · SGD 10,000 in a 1-year T-bill

Cut-off yield (BY26102T, 23 Jul 2026)1.68%
Inflation (Jul 2026)−2.2%
Real return−0.51%

The statement shows SGD 10,168 after a year; it buys what SGD 9,949 bought a year earlier.

What it means for you

How the inflation rate reaches a household

Pay risesIncome tax calculator
A 3% increment when inflation is 2.2% is a 0.8% real raise. The National Wages Council guidelines reference the prior year’s inflation when framing wage recommendations.
Savings and depositsCompound interest calculator
Fixed deposits, Singapore Savings Bonds and T-bills are quoted in nominal terms. Subtracting inflation gives the real return — the worked example above shows the current 1-year T-bill yield against 2.2%.
CPF balancesCPF calculator
The Ordinary Account pays a 2.5% floor and the Special, MediSave and Retirement Accounts 4.0%. At 2.2% inflation the OA floor roughly holds value; the 4.0% accounts compound ahead of prices.
Cost of livingCost of living calculator
The CPI tracks price change for a fixed basket. A household’s own cost of living also depends on how much it consumes and where — rent, car ownership and diet move a personal rate well away from the headline.
Mortgages and SORAMortgage calculator
MAS does not set an interest rate to fight inflation; it manages the Singapore dollar’s trade-weighted exchange rate. Floating home-loan rates follow SORA, which tracks interbank funding conditions rather than the CPI.
Common misconceptions

Five things people get wrong

Inflation is the same as the cost of living.
The CPI measures price change for a fixed basket. Cost of living also reflects how much a household consumes and where; SingStat measures it separately through the Household Expenditure Survey.
Falling inflation means prices are falling.
Disinflation means prices rise more slowly. Only deflation — a negative rate — means the index is lower than a year earlier.
MAS raises interest rates to control inflation.
MAS manages the Singapore dollar’s trade-weighted exchange rate (the S$NEER policy band). A stronger dollar makes imports cheaper, which is how it cools prices.
The CPI includes property prices.
It includes rent and imputed rent under accommodation, not purchase prices. HDB resale and private property prices are tracked by the HDB Resale Price Index and the URA Property Price Index.
A 2.2% savings rate beats 2.2% inflation.
It only holds value. Real return is (1 + nominal) ÷ (1 + inflation) − 1, which is zero when the two match; fees and tax on interest push it below zero.
Sources and reviewChecked against the July 2026 release

Official statistics for general information only. Not financial advice.

Sources: MAS SingStat

This page is provided for educational and informational purposes only. It does not constitute financial advice. All figures and worked examples are estimates for illustrative purposes, are subject to change, and do not reflect any individual’s circumstances. Always refer to MAS and SingStat and seek independent professional advice before making any financial decisions.