US inflation is 3.7%: why is Singapore's lower, and what does the gap mean for your money?
Singapore's headline inflation was 2.3% in August 2026, against 3.4% in the US the same month and 3.7% in September. Since 2020 Singapore was lower in 60 of 75 comparable months; the exception was December 2022 to February 2024, when GST rises and car prices pushed it above the US.
US consumer prices rose 3.7% in the year to September 2026, up from 3.4% in August, after a 9.1% monthly jump in the gasoline index (BLS). Singapore is also facing higher energy costs, but its inflation rate has stayed well below the US figure. This note measures that gap, looks at the one period when it reversed, and explains what it means for amounts priced in US dollars.
How big is the gap now?
In August 2026, the latest month available for both, Singapore’s all-items CPI was up 2.3% year on year (SingStat) and the US CPI 3.4%.
Singapore all-items CPI (2.3%) minus US CPI (3.4%), year-on-year rates for August 2026. Both are official, not seasonally adjusted figures. CapsWindow calculation
The US rate rose again to 3.7% in September. Singapore’s September CPI was scheduled for release on 23 October and was not out when this note was written, so the latest like-for-like comparison is August. Singapore inflation has been edging up as well, from 1.2% in December 2025 to 1.8% in April and 2.3% in August.
How often has Singapore been below the US since 2020?
In most months. This site’s Singapore CPI series runs to April 2026. From January 2020 to April 2026 there are 75 months with data for both countries (the US series has no value for October 2025). Singapore was lower in 60 of them and at or above the US in 15.
How often has Singapore been below the US since 2020?
Singapore CPI, average year-on-year / US CPI, average year-on-year
Shared linear scale from zero. Selected entries from the table below. Its dates, units, definitions and limitations still apply.
| Year | Singapore CPI, average year-on-year | US CPI, average year-on-year | Months compared |
|---|---|---|---|
| 2020 | −0.17% | 1.25% | 12 |
| 2021 | 2.32% | 4.68% | 12 |
| 2022 | 6.12% | 8.00% | 12 |
| 2023 | 4.85% | 4.15% | 12 |
| 2024 | 2.40% | 2.95% | 12 |
| 2025 | 0.88% | 2.69% | 11 |
| 2026 (January to April) | 1.55% | 2.97% | 4 |
Averages of monthly rates calculated by CapsWindow, using only months with data for both countries. They are close to SingStat’s official annual rates, such as 6.1% for 2022 and 4.8% for 2023 (SingStat), but are not the same calculation. The US series on this site is seasonally adjusted, so its rates can differ by a few hundredths of a point from the BLS headline figures.
2023 is the only full year in which Singapore averaged higher. The widest gap in Singapore’s favour was −3.6 points in February 2022; the widest the other way was +1.5 points in October 2023.
Why was Singapore higher from late 2022 to early 2024?
The 15 months run without a break from December 2022 to February 2024. Three things lifted Singapore prices while US inflation was coming down from its 2022 peak:
- GST. The rate went from 7% to 8% on 1 January 2023 and to 9% on 1 January 2024 (IRAS). Officials said the January 2023 rise in core inflation “was driven by the Goods and Services Tax (GST) rate increase” (Business Today).
- Cars. The motor car price index rose 24.4% in 2022 and 11.6% in 2023 (SingStat).
- Housing. Accommodation costs rose 4.2% in 2022 and 4.5% in 2023.
MAS core inflation peaked at 5.6% in January 2023 on the current series (SingStat M213891). MAS had already tightened five times between October 2021 and October 2022 (Malay Mail), letting the Singapore dollar rise faster. The monthly average exchange rate went from 1.4227 per US dollar in October 2022 to 1.2763 in August 2026 (FRED).
Why is it lower now?
Several items that drove the 2023 surge have slowed. In August 2026 accommodation was up only 0.8% and private transport 7.5%, food 2.3% and services 2.0% (MAS and MTI). The 2026 energy shock did reach Singapore, through electricity and gas (up 8.7%) and fuel-related transport costs, but it has not produced the kind of jump seen in the US, where the gasoline index alone rose 9.1% in one month.
MAS also uses the exchange rate against imported price pressure. In October it kept its appreciating policy band and said it “will allow the S$NEER to continue to strengthen and lean against the anticipated near-term rise in imported inflation” (MAS statement). MAS expects headline inflation of around 2.0% for 2026 as a whole.
Does core inflation tell the same story?
Less clearly, because the two core measures exclude different things.
| Measure | Singapore | United States |
|---|---|---|
| Headline, latest | 2.3% (August) | 3.7% (September) |
| Core, latest | 2.2% (August, MAS core) | 2.6% (September) |
| What core excludes | Accommodation and private transport | Food and energy |
| Core a year earlier | 0.3% (August 2025) | not used here |
In the US, headline inflation is more than a point above core because energy prices jumped. In Singapore, headline and core are almost the same, and core has risen from 0.3% in August 2025 to 2.2% in August 2026. MAS said core inflation rose to 2.1% in July and August from 1.5% in the second quarter, as “higher import costs passed through to a broader range of goods and services”. So the core gap with the US is narrower than the headline gap, and Singapore’s own trend is upward.
What does the gap mean for your money?
It matters when you convert a US-dollar amount. From December 2019 to April 2026, Singapore’s CPI rose 18.2% and the US CPI 28.5% (calculated from this site’s series). Over the same period the Singapore dollar strengthened from 1.3565 to 1.2759 per US dollar. A fixed US basket of goods therefore cost about 20.9% more in Singapore dollars, closer to Singapore’s own inflation than to the US rate.
That pattern fits the purchasing power parity idea: the currency with lower inflation tends to gain over long periods. It is a loose tendency, not a rule. Over short periods MAS policy, interest rates and capital flows often matter more, and this note does not predict where the exchange rate will go.
Interest rates add another layer. The Fed’s upper bound of 4.00% minus 3.7% inflation leaves +0.30 points. Singapore has no policy rate; using overnight SORA at the end of September (1.4015%) minus August inflation (2.3%) gives −0.90 points, a reference calculation only.
To see how the same Singapore dollar amount compares on CPI, M2 and US benchmarks over your own dates, use the past money calculator.
Compare your amount on several bases →
The month counts and annual averages use this site's series: Singapore CPI to April 2026 and a seasonally adjusted US CPI with no October 2025 value. The August and September figures in the text are official releases and are not mixed into those calculations. The two countries' baskets weight housing, cars, energy and food very differently, and Singapore's index was rebased to 2024 with new weights. Core measures are defined differently. Nothing in this note forecasts inflation or exchange rates; the MAS figures quoted are MAS projections.
Questions & answers
What is Singapore's latest inflation rate compared with the US?
Singapore's all-items CPI rose 2.3% year on year in August 2026 and MAS core inflation was 2.2% (SingStat). The US rate was 3.4% in August and 3.7% in September (BLS). Singapore's September figure had not been released when this note was written.
Has Singapore inflation ever been higher than in the US?
Yes. On this site's data, Singapore was at or above the US in 15 months, all between December 2022 and February 2024. GST rose from 7% to 8% in January 2023 and to 9% in January 2024, and car prices and rents rose quickly, while US inflation was falling from its 2022 peak.
Is MAS core inflation comparable with US core inflation?
Not directly. MAS core excludes accommodation and private transport but keeps food and electricity. US core excludes food and energy. The two measures answer different questions, so a gap between them is only a rough guide.
Does lower inflation mean the Singapore dollar will keep rising?
This note does not forecast exchange rates. Since 2019 the Singapore dollar has strengthened against the US dollar while Singapore inflation was lower, which matches the purchasing power idea, but MAS policy and capital flows also move the currency.
Source
- SingStat Table Builder M213781 - CPI, percent change over corresponding period of previous year, monthly ↗
- SingStat Table Builder M213891 - CPI additional indicators, MAS Core Inflation Measure, monthly ↗
- SingStat Table Builder M213811 - CPI, percent change by item, annual ↗
- MAS and MTI - Consumer price developments in August 2026 ↗
- MAS - Monetary Policy Statement, 14 October 2026 (via Mondo Visione) ↗
- US Bureau of Labor Statistics - Consumer Price Index, September 2026 ↗
- IRAS - Current GST rates and GST rate history ↗
- Business Today - Singapore core inflation in January 2023 ↗
- Malay Mail - MAS tightens for the fifth time since October 2021 (14 October 2022) ↗
- FRED - Singapore dollars to one US dollar, monthly average (EXSIUS) ↗
- CapsWindow - Data & methodology ↗