Singapore hit by first deflation in five years on falling global oil prices

Singapore was hit by deflation for the first time in five years last month on the back of plummeting global crude oil prices. -- ST PHOTO: MARK CHEONG
Singapore was hit by deflation for the first time in five years last month on the back of plummeting global crude oil prices. -- ST PHOTO: MARK CHEONG

SINGAPORE - Singapore was hit by deflation - or negative inflation - for the first time in five years last month on the back of plummeting global crude oil prices.

Consumer prices across the economy fell by 0.3 per cent in November over the same month last year, according to data released on Tuesday by the Statistics Department.

This was mainly caused by declining private road transport costs, which includes car and petrol pump prices. Private road transport costs fell 7 per cent last month over the same period in 2013.

Accommodation costs also declined 1.2 per cent amid a softening rental market.

However, food inflation jumped a relatively hefty 2.9 per cent, partly driven by an 8.5 per cent surge in the price of fruits.

Core inflation - a measure of everyday out-of-pocket costs - came in at 1.5 per cent last month, from the previous month's 1.7 per cent.

The core inflation measure excludes the costs of accommodation and private road transport.