singapore inflation 2016
Customers shop at a vegetable and fruits wholesale market in Singapore August 22, 2013. Reuters

Inflation in Singapore eased from one percent in 2014 to -0.5 percent last year.

Data showed the cost for accommodation in Singapore dropped 3 percent in December, in line with a similar drop in November, indicating that the housing rentals remained soft.

Full year core inflation fell from 1.9 percent in 2014 to 0.5 percent, the department of statistics said. Full-year core inflation excludes the costs of accommodation and private road transport.

On a monthly basis as well inflation edged down, marking a 14th straight month of drop in consumer prices.

In December the inflation number dropped to -0.6 percent from -0.8 percent in the preceding month.

The decrease in food inflation in December was marginally lower than in the month of November.

The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) stuck to their 2016 inflation forecasts of headline and core inflation at -0.5 to 0.5 per cent.

However, the MAS said the oil price drop has created uncertainties. "There is significant uncertainty over the outlook for average global oil prices for the year as a whole. MTI and MAS will continue to closely monitor the developments in global oil prices and assess their impact on domestic inflation."

"Notably, global oil prices have fallen by around one third since mid-October, and are expected to remain low in 2016 ... On the domestic front, some wage cost pressures remain, but their pass-through to consumer prices will be constrained by the subdued economic growth environment."