Singapore remains an expensive and challenging place to live in 2026, with actual costs exceeding incomes for many families. Inflation prospects, coupled with global and policy changes, shall firm a little, while wage growth will be steady though moderate.
Understanding these dynamics will help Filipino families better coordinate their respective household budget plans as 2025 moves towards its conclusion. Government assistance must include other staples such as food, transport, and utilities that may fall under greater pressure.
Inflation Outlook for 2026
The forecast officially states that core inflation will increase to 0.5%–1.5% in 2026, making the jump from some 0.5% in 2025. Headline inflation assumes an equal direction.
This will be a result of opening up global pressures, met with some domestic changes.
Key drivers to push up costs
High carbon tax (covering S$25 inside) Paper will definitely increase this 45 per tonne and fuel prices. In the transportation tag, public transportation rates enjoy a 5% increase to phase in from the end of 2025 and culminate in 2026.
Then there is this new levy for sustainable aviation fuels, so that flight ticket pricing becomes affected and, in general, the traveling costs of the consumer.
Housing and Utilities Pressures
One of the reasons rents remain high is the low availability of land plus the continued demand in the real estate mix. However, the prices of the utility may increase as the government has announced a lower rise in the carbon tax this year.
Additional U-Save rebates given to HDB households may still contrast with a slight cost increase in their overall expenses.
Food and Daily Necessities
The increase in global food prices might spark food inflation, but it seems nothing will be done about them. Hawker dishes seem quite affordable, but as a matter of fact, the prices of basic food items in supermarkets could be on the rise.
Transport Cost Hike
Public transport fares are affected by the hike in different rates of buses and trains plus the potential rise of car-related costs apparent in the increase in COE. Mostly, this hike is felt as people depend on public transport for daily commuting.
Wage Increase Forecast
Salary increases have been kept modest at 4% to 4.3% for 2025 and is expected to be the same in 2026. Wage increase changes, however, depending on the type and level of wage worker.
Inflation vs Wage Growth Comparison
This gives a forecast.
| Aspect | 2025 Estimate | 2026 Projection |
|---|---|---|
| Core Inflation | ~0.5% | 0.5%–1.5% |
| Headline Inflation | 0.5%–1.0% | 0.5%–1.5% |
| Average Salary Increase | ~4.3% | 4%–4.3% |
| Real Wage Growth | Positive (~3.8%–4.3%) | Likely positive but moderate |
| Key Cost Drivers | Easing | Carbon tax, fares, fuel levy |
Government’s Aid Continuing
The Last Assurance Package Cash should come through in December 2026. CDC Vouchers advancing ($300 in January) and U-Save rebates provide relief.
These targeted measures protect the lower-income and middle-income households from the impacts of such measures.
Tips to Manage Rising Costs
Track your spending, cook more, use public transportation with wisdom to get the best subsidized offers.
Skill-upgradation might lead to better-paying jobs.
In 2026, Singaporeans are also expected to experience some world policy adjustments that are sure to be reflected in increased cost of living in the country although inflation will remain low and the growth of wages will still be fairly constant. Yet with all these government facilities and intelligent habits, most people may well stay ahead.
Make sure to visit govbenefits.gov.sg so that you can check out any rebates or vouchers that you may be entitled to today. Take time to reflect on your budget, and as you develop your skills, check out the SkillsFuture app!