In a notable economic shift, Singapore’s Consumer Price Index (CPI) reversed its previous downward trend to climb into positive territory for the month of February 2025. Official statistics updated on March 24, 2025, reveal that the CPI reached a level of 0.80%, a significant transformation from the -0.80% registered in the preceding month of January.
The transition from a negative to a positive CPI may indicate a change in consumer prices as Singapore grapples with changes in economic indicators that could reflect stabilizing market conditions or other underlying factors influencing consumption patterns. In January 2025, the CPI's decline had signaled deflationary pressures, which, if continued, could have had prolonged impacts on the economy. However, the February turnaround suggests a potential recovery or adjustment phase as the month-over-month adjustment finds a new balance.
Economic analysts will be closely watching to see whether this upward adjustment signals a stabilized trend or if further month-to-month fluctuations can be expected. This development will likely influence monetary policy discussions and decisions as stakeholders assess the underlying causes and sustainability of this positive shift in consumer prices.
