According to recently updated data, Singapore's Consumer Price Index (CPI) fell to -0.30% in April 2025, marking a further shift into negative territory following a decrease of -0.10% recorded in March 2025. This month-over-month decline signifies an acceleration in the deflationary trend, raising concerns among policy-makers and economists about the potential implications for Singapore's economic stability.
The CPI, which measures changes in the price level of a market basket of consumer goods and services, indicates persistent deflation, as prices continue to drop month after month. The latest data update, released on May 23, 2025, highlights a more pronounced contraction in consumer prices compared to the previous month, underscoring the challenges that the Singaporean economy may face if deflationary pressures persist.
Economic observers note that while a moderate level of deflation can sometimes be beneficial, prolonged periods can lead to decreased consumer spending, delayed investment, and potentially stunted economic growth. With the downtrend in CPI evident over the past two months, the focus now turns to the Monetary Authority of Singapore and other economic stakeholders to evaluate potential interventions to stabilize the economic environment and support price levels.
