Singapore has its negative inflation, i.e., deflation, after 5 years from the last deflation in December 2009 amid the global financial crisis. The consumer price index was -0.3% in November 2014 over November 2013, mainly due to lower COE prices, falling accommodation costs and cheaper crude oil. In fact, private road transport fell 7% in November 2014 over November 2013, while accommodation costs declines 1.2% amid a softening rental market.
However, the core inflation, which excludes the costs of private road transport and accommodation, was up 1.5% in November 2014 over November 2013. Food inflation was up 2.9%, due to increases in non-cooked items and prepared meals. This is due to the high wage costs amid the tight labour market.
Experts have forecast the core inflation in 2015 to average between 2% to 2.5%, while the headline inflation will be between 1% to 1.5%.