A S$3,000 monthly budget used to feel like a reasonable baseline to get by. Today, it leaves us wondering where all our money went. The culprit here is inflation. Singapore’s core and overall inflation in 2026 is projected to average between 1.5% and 2.5%. While 2.5% might seem manageable, inflation isn’t obvious at first glance; it is gradual and persistent.

What Is Really Happening: The Power of Inflation

Prices did not explode overnight, but the kopi costs more, and your grocery basket feels lighter. A mere increase of 2% is enough to make life more expensive. Putting things into perspective, transport, food, and healthcare that cost S$20 in 2025 would have cost around S$14.40, S$15.70, and S$16.50 respectively in 2015.

Where Your S$3,000 Budget Is Being Eroded

Food and Groceries

As an import-dependent nation, Singapore is highly sensitive to any disruption in global supply chains. For instance, recent spikes in fuel costs driven by the Middle East tensions have a direct and immediate impact on domestic logistics....