DBS Group Research anticipates that Singapore's core and headline inflation rates for March 2026 will rise to 1.6% and 1.8% year-on-year, respectively, compared to 1.4% and 1.2% in February. This expected increase is attributed to imported energy price pressures following the Middle East conflict, which has led to spikes in global crude oil, refined petroleum, and gas prices [1].
The report highlights that the energy-driven shock is likely to manifest in higher costs for point-to-point transport services, travel-related services due to increased airfares, and private transport. However, price pressures in electricity, gas, and food categories are expected to remain contained for the time being [1].
DBS notes that the March 2026 inflation data will likely reflect the initial impact of these energy shocks, suggesting that the inflationary trend may persist if energy prices remain elevated [1]. No specific market reactions or analyst opinions beyond the DBS forecast are provided in the source article.
CONCLUSION
DBS Group Research projects a moderate rise in Singapore's inflation for March 2026, driven primarily by imported energy price shocks linked to the Middle East conflict. While transport and travel-related costs are expected to increase, pressures on electricity, gas, and food prices remain limited for now.