A year ago, an Economist headline read (March 26, 2015):
Why Singapore became an economic success
The article mentions the leadership of the nation's first prime minister, the late Lee Kuan Yew. Specifically, Yew opened up foreign trade and encouraged investment.
Also, it helps that Singapore is located at the mouth of the Malacca Straight, "through which perhaps 40% of world maritime trade passes."
But, in 2016, the country's CPI has registered a decline for two straight months.
Read this excerpt from a March 23 IBTimes article:
Deflation has deepened in Singapore thanks to steeper declines in accommodation and private road transport costs, sending the Singapore currency further away from recent highs.
The consumer price index fell 0.8% in the second month of the year, deeper than the 0.6% fall happened in January. …
However, core inflation - which strips out both of the components - edged up to 0.5% in February from 0.4% a month earlier.
Analysts polled by agencies like Bloomberg had forecast headline inflation at -0.7% and core inflation around 0.3%.
Details showed that private road transport costs fell 3.9% compared with the 1.8% drop in January, owing to weaker Certificate of Entitlement (COE) premiums.
Additionally, accommodation cost dropped 3.2% adding to the 3.1% decline showed in January.
You can read the entire article by clicking on the link below: