According to official data released on Thursday, overall price pressures showed renewed momentum as food inflation ticked up to 2.1 percent in June, driven by faster increases in both non-cooked food and food services. This slight acceleration from May’s 1.8 percent reading reflects broader cost shifts across several key consumer categories, including housing rents, holiday expenses, and household goods.
Food and Services Inflation Drivers in June
Food inflation climbed to 2.1 percent in June, up from 1.8 percent the previous month. According to official figures, the acceleration stemmed from faster price gains across both non-cooked food and food services. At the same time, services inflation edged up from 1.3 percent to 1.5 percent. Government data indicates this services bump was largely the result of larger increases in airfares and holiday expenses during the June school holiday period, which ran from May 29 to June 27.
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Housing Rents and Retail Goods Pressures
Accommodation inflation edged up slightly from 0.5 percent in May to 0.6 percent in June. According to the data, this minor upward movement was due to a faster pickup in housing rents. Meanwhile, retail and other goods inflation increased from 1.6 percent to 1.7 percent. Official statistics attribute this tick up to larger price increases for both furniture and other recreational goods purchased by households.
Private Transport and Electricity Cost Trends
Private transport inflation dipped from 8.6 percent in May to 8.4 percent in June. According to authorities, this moderation occurred because of a smaller increase in petrol prices compared to the previous month. Conversely, electricity and gas prices fell at a slower pace, moving from -3 percent in May to -2.9 percent in June, reflecting a smaller decline in electricity prices.
According to the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI), the regulated electricity tariff for each quarter is set based on average natural gas prices in the first two and a half months of the preceding quarter. “Hence, higher global energy prices over the period of April to mid-June 2026 will only be reflected in the regulated electricity tariff in the third quarter of 2026, starting from July,” the authorities noted. Additionally, average prices in the Open Electricity Market fell at a slower pace in June compared to May, contributing to a smaller decline in the electricity CPI.
Frequently Asked Questions
What caused the rise in food inflation in June?
According to official data, food inflation rose to 2.1 percent in June from 1.8 percent in May due to faster price increases in both non-cooked food and food services.
Why did services inflation increase in June?
Services inflation rose from 1.3 percent to 1.5 percent, driven largely by larger increases in airfares and holiday expenses coinciding with the June school holidays.
How are regulated electricity tariffs determined?
According to MAS and MTI, regulated electricity tariffs are set quarterly based on average natural gas prices during the first two and a half months of the preceding quarter, among other factors.
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