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Update: Singapore government lowers 2016 inflation forecast to -1 to 0 per cent
SINGAPORE'S 2016 headline inflation rate is now expected at -1 to 0 per cent, said the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) on Tuesday.
This is lower than the previous official forecast of -0.5 to 0.5 per cent.
The lower inflation projection is due to the significant step-down in global oil prices in recent months, and the larger-than-expected decline in Certificate of Entitlement (COE) premiums at the start of the year.
However, the forecast for core inflation - which strips out the costs of accommodation and private road transport - remains unchanged at 0.5 to 1.5 per cent.
MAS and MTI said that this reflects the smaller weight of oil-related items and the exclusion of private road transport costs.
"MAS Core Inflation is still expected to pick up gradually over the course of 2016, as the disinflationary effects of oil as well as budgetary and other one-off measures ease," said MAS and MTI.
Earlier on Tuesday, data from the Department of Statistics showed that consumer prices continued to fall 0.6 per cent year-on-year in January - the 15th consecutive month of negative inflation.