Singapore’s inflation rate has slowed to its lowest level since February 2021, reaching 2.1% year-on-year in January 2025. The Monetary Authority of Singapore (MAS) attributes this decline to easing global supply chain pressures and lower energy costs. A stronger Singapore dollar, supported by MAS policies, has also contributed to reducing import costs.
The global economy has seen significant improvements in supply chain efficiency, with reduced shipping delays and lower freight costs. These factors have helped stabilize prices for goods and services in Singapore, providing relief to both households and businesses.
Prime Minister Lee Hsien Loong acknowledged the role of global factors in the slowdown. “While we are encouraged by the decline in inflation, we must remain cautious of external risks, such as geopolitical tensions and fluctuating commodity prices,” he said.
