Inflation Is At 1.9%, But What Is Actually Getting More Expensive For The Average Singapore Household?

Singapore’s overall inflation increased to 1.9% in June 2026, up from 1.8% in May, according to the latest data published on 23 July. This represented a general increase in prices for food, services, retail and other goods. The rise in inflation is represented by the percentage change in Consumer Price Index-All Items over the corresponding period of the previous year.

Here are four items that have seen the largest price increases.

#1 Petrol

Petrol prices increased by 17.1% in June 2026 compared to June 2025.

June is the fourth month in a row in which petrol prices are higher than at this time last year, and it’s clear what’s driving the rise since March.

The United States and Israel attacked Iran on February 28, leading to Iran blocking the Strait of Hormuz, a crucial waterway where 20 million barrels of crude oil and oil products used to pass through each day. This led to oil prices skyrocketing, reaching a peak of US$126 per barrel in late April.

Back in March, our government reassured Singaporeans that we had months’ worth of energy stockpiles, and in April said that there were plans to increase our fuel reserves. However, they also warned that prices would go up.

The rise in petrol prices has also contributed to the rising cost of private transport, which includes cars and motorcycles. Private transport prices rose by 2.5% in 2025 compared to 2024, but have risen 8.4% in June 2026, compared to June 2025.

It has also led to an increase in prices for other transport services, with the biggest price increases seen in seafares, which jumped 14.8% in June 2026 compared to June 2025.

Read Also: From Petrol To Food: 5 Everyday Costs In Singapore That Rise When Oil Prices Increase

#2 Tobacco

Tobacco prices increased by 14.2% in June 2026 compared to June 2025.

The rise in tobacco prices is due directly to a 20% increase in the tobacco excise duty. This was announced in the Budget 2026 speech. Duties on manufactured tobacco products, including cigarettes and cigars, would rise from 49.1 cents to 58.9 cents per stick.

The excise duty on tobacco products has been raised steadily over the past decade. There was a 10% increase in 2018, followed by a 15% increase in 2023.

Read Also: Financial Vices In Singapore: 5 Things That Cost More In Singapore Compared To Other Countries

#3 Coffee And Coffee Substitutes

The price of coffee and coffee substitutes increased by 11.7% in June 2026 compared to June 2025.

Regular coffee drinkers might have noticed that their daily dose of caffeine has been getting more expensive since the year began. This is due to several factors. Climate change and weather disruptions are affecting coffee production worldwide, reducing yields especially for major exporters like Brazil. The latest coffee harvest from Brazil was estimated to be 64% complete, behind last year’s comparable level of 77% and the five-year average of 70%.

Locally, there are also supply chain challenges, including increased shipping costs, where rising fuel prices and a greater demand for freight services have contributed to the price increase.

According to the Consumer Price Index, instant coffee is now $12.76 per 200 grams as of June 2026. This is the highest price instant coffee has ever been, and this is the third record high in three months.

Read Also: How Much Can You Earn Working As A Barista In Singapore?

#4 Health Insurance

Health insurance prices increased by 8.6% in June 2026 compared to June 2025.

The rise in health insurance prices has slowed since January 2026, which saw a 16.4% jump compared to January 2025, the highest ever recorded since 2006. In April 2026, the Ministry of Health (MOH) pinpointed “overly generous insurance coverage” as the key reason for rapidly rising private healthcare insurance claims, which led to escalating private insurance premiums.

To address rising insurance premiums, MOH introduced new design requirements for Integrated Shield Plan riders, effective 1 April 2026. These requirements discourage what MOH calls “a greater tendency for over-servicing by healthcare providers and higher risk of over-consumption of healthcare services by patients”.

MOH noted that, in contrast, healthcare costs in general rose by only about 3% in 2025, and that the steady pace held in June 2026 at 3.1%.

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