Singapore disinflation not a concern for now
WHETHER Singapore is experiencing disinflationary pressures and what that might mean for the economy were the inevitable questions that followed Monday's inflation release showing that consumer prices in October barely rose 0.1 per cent from a year ago.
This was the lowest monthly headline inflation rate since December 2009 and the fifth consecutive month of slowing inflation, and prompted private-sector economists to highlight the "deepening disinflation" and the emergence of a "disinflation dynamic".
Singapore is not alone in the trend of slowing price rises this year. Consumer price inflation has also been weak elsewhere in Asia, notably in China and South Korea. In America, UK and the eurozone, price increases are falling short of their central banks' inflation targets. The eurozone, in particular, is fighting off deflationary pressures which have become a source of concern for the global economy.
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