Singapore Sept 2026 inflation eases to 2.2%, Q3 output growth slows to 8.5%

Chipmaking drove the third-quarter slowdown in factory output

Industrial production measures how much Singapore's factories produce. It grew 8.5% year on year in the third quarter. Growth for the second quarter was revised up to 13.2% from 12.9%. Technology output caused most of the slowdown:

• Electronics cluster: 14.8%, down from 35.1%
• Semiconductors: 11.7%, down from 37.3%
• Biomedical: still shrinking at -14.3%, after -16.9%

Inflation dipped but stays well above its end-2025 level

The consumer price index (CPI) tracks the prices households pay. Headline CPI rose 2.2% year on year in September, down from 2.3% in August. It has risen steadily from 1.2% at the end of 2025. Food prices rose 2.4%. Housing and utilities rose 1.4%. Electricity inflation has held near 9% since July, after running at about -3% in April–June.

Transport is still the fastest-rising price group

Transport prices rose 7.4%, down from 8.1%. Within transport, petrol inflation picked up to 18.0% from 15.6%. Motor car inflation cooled to 5.4% from 7.3%. A certificate of entitlement (COE) is the permit Singapore requires to own a vehicle. COE premiums eased in October's first bidding round. Category A fell to S$130,001 (Singapore dollars) from S$133,009. Category B fell to S$130,100 from S$135,001.

Government revenue rose, but the cash balance swung to a deficit

Government operating revenue was S$10.9bn (billion Singapore dollars) in September, up about 13% on a year earlier. The government cash balance showed a S$5.95bn deficit in September, after a S$10.7bn surplus in August. Separately, total digital trade reached S$521.1bn in 2024, up 12% from 2023. Digital exports were S$307.2bn.