Another Happy Consequence of Cheap Oil
Two boys making funny faces in front of a 'bak kua', or barbecued meat counter in Singapore. 'Bak Kua' is a popular snack among ethnic Chinese during the Chinese New Year season in Singapore.
Photographer: Stefen Chow/BloombergEach year, Singapore's inflation has usually ticked up in the weeks before Chinese New Year, partly because of the higher prices of the beloved bak kwa, or barbecued pork, that is gifted and consumed in enormous quantities during the festival. While the delicacy is available all year round, long lines can be seen outside the most popular shops in the weeks before the holiday, which even impose limits on individual purchases.
An exception to the inflation-bak kwa relation was 2014, when lower COE or vehicle-permit prices caused inflation to slow. This year, it's oil. The Bloomberg bak kwa index -- which tracks prices of the traditional barbecued pork at four of Singapore's most popular vendors -- shows prices are at a record high this year. Inflation though, is at a five-year low, as cheaper oil more than offsets pricier bak kwa. So there are even longer lines at the shops.