Singapore Central Bank Adjusts Inflation Forecast as Price Pressures Ease

Published 2026-10-14

The Monetary Authority of Singapore (MAS) has updated its economic outlook, narrowing its forecast for core inflation for the remainder of the year. The central bank now expects core inflation to fall between 1.5% and 2%. This is a downward adjustment from its previous projection in July, which suggested inflation could reach as high as 2.5%.

Core inflation is a key measure used by the MAS to track the rising cost of goods and services, excluding items like private transport and accommodation. By narrowing this range, the central bank indicates that price pressures in the economy are becoming more stable and predictable than previously anticipated.

This change in the inflation outlook comes as global economic momentum, particularly in the technology and artificial intelligence sectors, shows signs of cooling. As these industries influence global supply chains and consumer demand, the slowing growth helps to reduce the upward pressure on prices for businesses and households in Singapore.

Following this announcement, the MAS has decided to maintain its current monetary policy settings. By keeping its policy unchanged, the central bank aims to support sustainable economic growth while ensuring that inflation remains under control in the coming months.

For Singaporean residents, this news suggests a more stable environment regarding the cost of living. As the central bank continues to monitor global and domestic economic data, it remains focused on its primary goal of maintaining price stability to support the nation's long-term economic health.

Sources: The Edge Malaysia

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