Singapore’s inflation crashed to 5-year low in January

CPI-All Items Inflation registered at -0.4% last month.

Singapore’s consumer price index-all items inflation crashed to its lowest level since Devember 2009 in January, after registering at -0.4% compared to -0.1% in December.

According to the Ministry of Trade and Industry, the decline was mainly on account of sharper price declines in direct oil-related items as well as lower food and services inflation.

Prices of direct oil-related items were 13.6% lower in January, after falling by 7.4% in the preceding month, as petrol pump prices and electricity tariffs were cut further following the correction in global oil prices.

Food inflation moderated to 2.2% from 2.7% in December 2014, as a result of the high base in January 2014 when food prices rose significantly during the Chinese New Year festive period. 

Overall services inflation slowed to 1.2% from 1.7% in December, reflecting the impact of enhanced subsidies for medication in polyclinics and Specialist Outpatient Clinics. Meanwhile, domestic services and refuse collection services saw a pick-up in price increases.

Accommodation cost was 1.9% lower, extending the 1.7% decline in the previous month, given the soft housing rental market.

Private road transport cost fell by 5.0%, compared to the 5.3% drop in December 2014, owing to a smaller correction in car prices.