Singapore’s Consumer Price Index-All items inflation has fallen year-on-year by 1.6% in May, which is slightly over three times more than the 0.5% decline reported the month before.

In a joint release today, the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) mainly attribute the decline to base effects associated with the timing of the disbursement of Service & Conservancy Charges (S&CC) rebates which are disbursed in May, July and October this year. The negative contribution from the rebates in May will be reversed in June, add the institutions.

Another significant factor contributing the fall in headline inflation is the contraction of accommodation costs by 6% in May, compared to the 0.9% fall in the previous month.

Private road transport costs were 7.6% lower compared to the 7.1% decline in April this year due to a larger fall in petrol …