Singapore Consumer Prices Drop More Than Forecast in May

Consumer prices in Singapore fell more than forecast in May, extending a record slump that was triggered by falling oil and house prices.

The inflation rate declined 1.6 percent from a year ago after dropping 0.5 percent in April, Statistics Singapore said in an e-mailed statement on Thursday. The median estimate of 17 economists surveyed by Bloomberg was for a 0.8 percent fall.

“Car prices and housing rentals will continue to dampen overall inflationary pressures,” the Monetary Authority of Singapore said in a separate statement. The headline inflation rate is forecast to remain negative for the rest of the year, it said.

The bank’s core inflation measure, which strips out accommodation and transport costs, rose 1 percent in May, lower than the 1.1 percent median estimate in a Bloomberg survey.

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