Why does Singapore core inflation matter for German investors?

It shapes the MAS policy outlook and the likely path of the SGD. Stable inflation supports lower volatility for SGD-linked assets and steadier returns when converted to euros. That helps with planning hedges, selecting Asia-focused funds, and managing bond duration in diversified German portfolios.

What is the difference between headline CPI and core inflation in Singapore?

Core inflation excludes private road transport and accommodation, giving a cleaner view of underlying price trends. Headline CPI includes those volatile components. For MAS, a stable core rate is important for exchange-rate policy settings and for judging how broad price pressures are in the domestic economy.

How could EUR/SGD react if core stays at 1.2%?

If Singapore core inflation stays near 1.2%, we expect range-bound moves in EUR/SGD with the SGD guided by the policy band. Currency returns would likely be driven by carry and hedging costs rather than big swings. We would keep hedges flexible and scale them with volatility.

Which assets may benefit from soft Singapore inflation?

Income assets like high-grade SGD bonds and REITs often gain from a stable inflation backdrop. For German investors, Asia-ex Japan UCITS ETFs and diversified Singapore income funds can fit, assuming costs and currency hedges are well managed. Position sizing and risk controls remain crucial in case global prices rise.

Global Market Insights

December 23: Singapore Core Inflation Stays at 1.2% YoY, Easing MAS Tightening Risk

ByHuzaifa Zahoor December 23, 2025December 23, 2025

Singapore core inflation stayed at 1.2% year over year in November, a softer reading that supports a steady MAS policy outlook. For investors in Germany, stable inflation reduces the chance of tighter policy and points to a calmer path for SGD-sensitive assets. We look at why Singapore core inflation matters for EUR-based portfolios, what the latest Singapore CPI November print signals, and how rates, FX, and regional equity exposure could react into early 2026.