Singapore May consumer prices seen falling for 7th straight month

[SINGAPORE] Singapore's consumer price index in May probably fell from a year earlier for a seventh straight month, a Reuters poll showed, likely dragged down by lower housing costs.

The all-items consumer price index (CPI) was seen falling 0.5 per cent from a year earlier, according to the median forecast in a Reuters survey of 10 economists.

In April, headline CPI fell 0.5 per cent from a year earlier, the biggest drop since late 2009.

If CPI declines again in May, that would be the seventh straight month in which headline CPI fell year-on-year, matching a similar streak from November 2001 to May 2002.

The poll also showed that the Monetary Authority of Singapore's (MAS) core inflation measure likely rose 0.5 per cent in May from a year earlier. In April, core CPI rose 0.4 per cent from a year ago, the smallest increase in five years.

The central bank's core inflation measure excludes changes in the price of cars and accommodation, which are influenced more by government policies.

REUTERS