Issue #80: What's Happening This Week? DBS Grocery Discounts, Rising Inflation Expectations, and More

This week, thanks to DBS, we’re looking at $3 off rice and cheaper eggs at the checkout. The bank is rolling out grocery discounts to ease the sting of rising prices, right as households' inflation expectations tick up to 3.4%, the highest reading since geopolitical tensions started rattling markets this year. Add in a surprise dip in COE premiums for smaller cars, and it's a mixed bag of good news and reality checks for Singapore's wallets this week. Here's what you need to know before your next grocery run or car purchase.

Psst, missed last week's issue? View all past editions of What's Happening This Week? to catch up.

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DBS cuts $3 off rice and eggs to ease grocery bills

DBS is giving Singaporeans a break at the checkout counter with its new Saturday Savings programme, which knocks $3 off select rice and egg brands for shoppers paying with a DBS or POSB card at Giant or Sheng Siong. A 5kg bag of Sheng Siong's own-brand jasmine rice, for instance, comes down from $7.90 to $4.95.

Running from 18 July to 29 August, the promotion is part of a $10 million initiative by the bank and covers 129 outlets islandwide. From September, DBS will add a further $3 PayLah! cashback for spending at hawker centres and heartland shops on Saturdays.

• $3 off Giant Farm Fresh Eggs (30s) and Giant Jasmine Fragrant Rice (5kg)
• $3 off Egg For You Fresh Eggs (30s) and Happy Family Fragrant Jasmine Rice (5kg) at Sheng Siong
• About 90,000 redemptions available weekly, capped at 1 per item per customer per day

The bank noted that its everyday cards and PayLah! rewards saved customers $13.7 million last year, with over a third of beneficiaries being seniors or lower-income earners. Education Minister Desmond Lee, who attended the launch, said he hopes more businesses will step forward to complement the government's own cost-of-living support efforts.

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Singaporeans' inflation expectations tick up to 3.4% amid geopolitical fears

Singaporeans are bracing for slightly pricier days ahead. The latest Singapore Index of Inflation Expectations survey by DBS Group Research and the Singapore Management University (SMU) found that households' one-year-ahead inflation expectations climbed to 3.4% in June, up from 3.3% in March, with core inflation—which excludes accommodation and private transport costs—rising in step.

Of the 536 households polled, 87.7% expect prices to rise over the next year, down slightly from 88.3% in March. DBS chief economist Dr Taimur Baig pointed to energy supply constraints from Middle East conflicts and AI-driven chip demand as key drivers of the global inflation rebound this year.

• Transport: 3.5% → 3.8%
• Information and communication: 2.2% → 2.5%
• Food, housing and utilities, healthcare, clothing: unchanged

Longer-term views also shifted: the 5-year-ahead inflation gauge rose to 4.3% from 4.1%, though core expectations at that horizon held steady at 3.8%—a sign, researchers said, that longer-term expectations remain anchored even as short-term geopolitical risks bite. The uptick follows MAS's April move to tighten monetary policy, its first since 2022.

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ALSO READ: Is Living in Singapore Expensive? Here's The Cost of Living in Singapore (2026)

Category A COE premium falls to $126,000 as Category B dips slightly

Car buyers got some relief in the latest COE bidding exercise on 22 July, with Category A premiums—covering smaller cars up to 1,600cc and 130bhp—falling 2.33% to $126,000, a step down from the previous record of $129,000 set in the last exercise.

Other categories closed mixed:

• Category B (larger, more powerful cars): $129,890, down 0.76% from $130,889
• Category C (commercial vehicles): $93,889, down 1.17% from $95,000
• Category D (motorcycles): $10,202, up marginally from $10,201
• Category E (open, mostly used for large cars): $129,971, up 0.13% from $129,801

A total of 4,455 bids came in for a quota of 3,242 COEs available this round. Despite Category A's dip, premiums across most categories are still hovering near the highs they've climbed to since the start of the year, so anyone eyeing a new car shouldn't count on this easing to continue. If you're planning a purchase, it's worth comparing loan and insurance costs now rather than waiting for COE prices to fall further.

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ALSO READ: COE Guide in Singapore (2026): What It Means, Bidding Process & Price Trends

That's it for this week! Stay tuned for next week's What's Happening This Week to keep up with the latest in finance, business, and beyond.