Singapore experienced deflation for two straight months in November and December 2014, but worryingly, many Singaporeans seem unconcerned with this development. Here’s why you should keep a careful eye on Singapore deflation.

When the Department of Statistics released Singapore’s November consumer price index two months ago, there was a mixture of concerned murmurs and expectant nods from many local economists. For the uninitiated, the consumer price index (CPI) measures the collective price of a variety of consumer goods and services in a country and is used by governments as a tool to measure price and inflation pressures.

For the first time in five years, the Singapore CPI for November dipped into the red (-0.3 percent), dragged down by private transport costs, petrol pump prices, and a softer housing rental market. However, if you removed the costs of private transport and accommodation, core inflation was at 1.5 …