Singapore reports lower-than-expected inflation for April at 1.8%, revises economic growth higher

Singapore on Monday reported a lower-than-expected rise in consumer prices for April at 1.8% on the back of a smaller increase in services, retail and other goods inflation.

Reuters-polled economists had estimated headline inflation at 2%.

Core inflation — which strips out prices of private transport and accommodation — came in at 1.4% compared with expectations of 1.7%.

The Monetary Authority of Singapore, however, said that the city-state's imported cost pressures are expected to pick up and broaden in the months ahead."As higher energy and other input costs arising from the developments in the Middle East pass through global supply chains, they will raise production and transport costs for a wider range of Singapore's imported goods and services," according to the government statement.

The MAS expects headline and core inflation to come in at 1.5%-2.5% for 2026.

Zavier Wong, market analyst at trading platform eToro, described the reading as "a mild positive surprise," adding that with peace talks in the Middle East appearing to progress and oil prices dipping recently, there was a "credible path to some imported cost relief" later this year.

Earlier in the day, Singapore revised its first-quarter GDP growth sharply higher to 6%, up from 4.6% in advanced estimates, and topping Reuters estimates of 5.1%.

The country's ministry of trade and industry said that Singapore's full year growth will come in between 2%-4% in 2026, amid energy-related disruptions in the Strait of Hormuz.

The MAS in April tightened its monetary policy for the first time in about three years due to the inflation outlook.

Unlike most nations, Singapore does not use interest rates to manage its monetary policy, but instead guides the Singapore dollar within a policy band against a trade-weighted basket of currencies.

Singapore dollar is managed within the set policy band, whose precise levels are not disclosed.