According to a report from The Business Times, inflation in Singapore has went down to a new low of 0.1% in October – the lowest since December 2009.
This was mainly due to the sharp decline to the cost of accommodation and oil-related items. Another reason is due to the fluctuation of the certificate of entitlement (COE) premiums.
Inflation is likely to remain low with higher supply of COE and housing units while the consumer price index of food, education and healthcare has been increasing.
Taking reference to Consumer Price Index, Oct 2014 published by the Department of Statistics, the increase in price of fruits and vegetables has contributed to the the overall increase in food price index.
Poor weather condition has attributed to the higher prices of food supply in the region.
For education, the consumer price index has increased by 3.2% as compared to last year and medical treatment has also went up by 2.8%.
Core inflation is expected to averaging between 2-3% in 2015.