Inflation was negative 0.2% in December 2014, compared to December 2013. This was due mainly to fluctuations in certificate of entitlement premiums, soft housing rental market and cheaper oil.
This is the second consecutive month that Singapore encounters deflation, with the index at ‑0.3% in November 2014.
Core inflation, which excludes the cost of accommodation and private road transport, however, remained at 1.5% in December 2014. Food and prepared meals were the largest positive contributing factor to inflation in December 2014.
The overall inflation in 2014 is 1%, compared with 2.4% in 2013, the lowest since 2009. The core inflation in 2014 increased to 1.9% from 1.7% in 2013.
Official forecasts for headline inflation is between 0.5% to 1.5%, while the core inflation is between 2% to 3% in 2015.