Singapore Consumer Prices Plunge in May

Singaporean consumer prices fell more than predicted in May, extending a record slump triggered by a fall in oil prices and housing costs.

According to Statistic Singapore, consumer price index, which measures inflation rate declined 1.6 percent year-on-year, following a drop of 0.5 percent in April. This is below 0.8 percent Bloomberg median estimate.

“Car prices and housing rentals will continue to dampen overall inflationary pressures,” the Monetary Authority of Singapore said in a separate statement. The headline inflation rate is forecast to remain negative for the rest of the year, it said.

Core inflation, excluding accommodation and transport costs rose 1 percent in May, lower than 1.1 percent predicted by economists.