Inflation in Singapore fell 0.6% year-on-year in December, compared to –0.8% in November. Core inflation, which excludes the cost of accommodation and private road transport, rose to 0.3% from 0.2% in November.
Private road transport cost fell by 1.1% in December, compared to the 1.7% decline in November. Accommodation cost dropped by 3% in December, same as the decline in November. However, overall services inflation increased to 0.9% in December, up from 0.7% in November, due to a faster pace of increase in holiday travel expenses and a smaller decline in telecommunication services fees. Meanwhile, food inflation was down to 1.5% last month from 1.6% in November, due to the moderation of increase in prices of prepared meals such as hawker food.
For the whole of 2015, inflation fell by –0.5%, down from 1% in 2014. This is the first decline since 2002. Core inflation eased to 0.5% in 2015, compared to the 1.9% in 2014.
Core Inflation is expected to be between 0.5% and 1.5% in 2016 while overall inflation is projected to average between –0.5% and 0.5% in 2016, according to MAS and MTI.