Singapore’s inflation rate has slowed to its lowest level since February 2021, reaching 2.1% year-on-year in January 2025. While this marks a significant improvement from December 2024’s 3.4%, economists caution that external risks could still disrupt the positive trend. Geopolitical tensions and fluctuating commodity prices remain key concerns.
The Monetary Authority of Singapore (MAS) has highlighted the role of a stronger Singapore dollar and improved global supply chain conditions in driving the slowdown. However, the central bank warns that these factors may not be enough to offset potential future shocks.
Prime Minister Lee Hsien Loong emphasized the need for vigilance. “While we are encouraged by the slowdown in inflation, we must remain cautious and prepared for any challenges ahead,” he said.
