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Singapore Today

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Submitted By amosc9
Words 631
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This article describes inflations in Singapore in recent times. For the first time in five years, previously due to global financial crisis, inflation rate turned negative also known as deflation, crediting the plunging of oil prices. According to Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore (MAS), CPI for all items fell due to decrease in private transport costs, taking fuel cost as main component of private transport costs.
Aside from that, prices in housing and clothing/footwear categories also fell. CPI for all items is expected to remain subdued and expected to drop further in current year due to anticipated increase supplies of car COEs and newly completed housing units.

Core inflation, which excludes the costs of accommodation and private road transport, is seen as a better measure of everyday costs, has also lowered due to a smaller increase in services fees. Core inflation is likely to stay firm and average 2 per cent to 3 per cent this year. This article points out the various causes of fall in inflation in Singapore late last year. Apart from higher supply, the drop in crude oil prices is a also the product of slowing growth. As a result of weaker demand and reluctance on the part of oil producers to cut supply.

According to economists, the slump in global oil prices pulled down headline inflation in Singapore. Global crude oil prices have fallen in recent months to about US$60 per barrel on Tuesday, as a result of weaker demand and reluctance on the part of oil producers to cut supply.

They also said the headline inflation of -0.3 per cent did not come as a surprise as consumer prices in Singapore have been easing in recent months - as a result of effective monetary policy, as well as measures to curb rising property and car prices.

Economists added that Singapore could see deflation again for the month

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