Purchasing power is how much a given amount of money can buy. It falls when consumer prices rise, which is why a fixed sum held over several years buys less at the end of the period than at the start.
Key takeaways
- Purchasing power moves inversely to the price level: when the CPI rises, each dollar buys less.
- The CPI-All Items index stood at 102.9 in June 2026 on a 2024 base of 100, so a basket costing SGD 100 in 2024 cost about SGD 102.90 in June 2026.
- Read the other way, SGD 100 in June 2026 bought roughly what SGD 97 bought on average in 2024.
- CPI-All Items inflation was 1.9% year-on-year in June 2026, and MAS forecast 1.5-2.5% for 2026 as a whole in its July 2026 Monetary Policy Statement.
- A return that is lower than inflation over the same period leaves purchasing power smaller at the end than at the start.
See how this applies to your own figures.
Singapore Inflation Calculator →How purchasing power is measured
Purchasing power is measured against a price index. Dividing a sum of money by the CPI, expressed relative to its base of 100, restates that sum in the prices of the base year. With the June 2026 CPI at 102.9 and 2024 as the base, SGD 100 in June 2026 corresponds to about SGD 97 in 2024 prices.
Why it matters over long horizons
Small annual rates compound. Sums that are fixed in nominal terms — cash balances, level annuity payments, an unindexed allowance — lose purchasing power steadily whenever prices rise, and the effect grows with the number of years involved. Amounts that are indexed to prices or that earn a return above inflation hold their purchasing power better.
How Singapore manages the price level
MAS uses the Singapore dollar exchange rate, managed against a trade-weighted basket within the S$NEER policy band, as its main tool for keeping inflation low and stable over the medium term. The slope, width and centre of the band are reviewed at each Monetary Policy Statement.
Key purchasing power figures
| Item | Figure |
|---|---|
| CPI-All Items index (June 2026, 2024 = 100) | 102.9 |
| Cost in June 2026 of a 2024 basket priced at SGD 100 | about SGD 102.90 |
| SGD 100 of June 2026 money, in 2024 prices | about SGD 97 |
| CPI-All Items inflation (July 2026) | 2.2% year-on-year |
| MAS 2026 inflation forecast (July 2026 MPS) | 1.5-2.5% |
Figures as at 2026. Source: MAS.
Worked example
The CPI-All Items index was 102.9 in June 2026 against a 2024 base of 100. A cash balance of SGD 10,000 left untouched since 2024 therefore bought roughly what SGD 9,720 bought at 2024 prices. The exact figure depends on which months are compared.
Related terms
All Singapore glossary terms →Related calculator
See what a sum of money is worth in another year once Singapore inflation is applied.
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.