Don't let lower inflation breed complacency

THE unexpected fall in Singapore's June inflation rate to below 2 per cent may be cause for some cheer, given the dismal output and trade figures of late. But Singaporeans should not grow complacent about price pressures.

The monthly inflation rate has been tame this year, far from the alarming 4-5 per cent levels of the last three years. On Wednesday, the government said inflation in June fell to 1.8 per cent. This was a sharper drop f…