According to the Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore (MAS), core inflation, which strips out private road transport and accommodation costs, dropped to 0.8 percent in July, equivalent to that in April 2014.
The easing in core inflation was due to a fall in prices of retail and other goods, a larger decline in electricity and gas costs and lower service inflation.
The inflation figures were below what analysts polled by Bloomberg had forecast. They had tipped overall inflation to come in at 0.5 percent and core inflation to ease to 1.0 percent.
Economists previously said that they expect Singapore’s central bank to ease monetary policy at its semi-annual meeting in October, a move that seems increasingly likely, given the latest inflation figures and the darker economic outlook.
Earlier this month, Singapore slashed its forecast for economic growth this year to between zero and 1 percent from 1.5 percent to 2.5 percent, and its prediction for shipments of non-oil domestic exports to minus 9 to minus 8 percent.-VNA
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