Singapore’s economic landscape showed unexpected resilience this month, as headline inflation for April cooled to 1.8%, falling below the anticipated 2% mark. This deceleration was primarily driven by a reduction in price increases within the services and retail sectors. Core inflation, which excludes private transport and accommodation costs, also came in lower than forecasted at 1.4%, compared to the expected 1.7%.

In a significant boost to the nation’s economic outlook, the first-quarter GDP growth was revised sharply upward to 6%, a substantial increase from the previous advanced estimate of 4.6%. This upward revision highlights a stronger-than-expected start to the year, providing a more robust foundation for the country’s fiscal trajectory.

Despite the current cooling of consumer prices, the Monetary Authority of Singapore (MAS) has cautioned that imported cost pressures may intensify in the coming months. Geopolitical developments in the Middle East are expected to impact global supply chains, potentially driving up energy and other essential input costs. These factors could lead to broader increases in the cost of imported goods and services across the city-state.

Looking ahead, the MAS has projected that both headline and core inflation will fluctuate between 1.5% and 2.5% throughout 2026. While the nation’s full-year growth is estimated to land between 2% and 4% for that period, the government remains vigilant regarding energy-related disruptions. Unlike many other central banks, Singapore continues to manage its monetary policy by guiding the Singapore dollar within a specific policy band against a basket of currencies.