Singapore’s consumer price index (CPI) in January fell 0.4 percent compared to the same period last year due to sharp decline in petroleum price and cheaper food and services, the Department of Statistic said on February 23.

Particularly, the price of oil-related items contracted 13.6 percent in January, after falling 7.4 percent in the previous month. Inflation for food was kept at 2.2 percent, down from the 2.7 percent in December 2014.

Overall service prices dropped by 1.2 percent compared to the 1.7 percent decrease in December 2014 while road transport cost fell 5 percent.

The Monetary Authority of Singapore (MAS) forecasted the island country’s inflation is expected to reduce further and only rise in the second half of 2015.

Generally, Singapore’s inflation is predicted to fluctuate between minus 0.5 to 0.5 percent this year while the core inflation, which excludes land transport and house rent, is expected to come in at 0.5 to 1.5 percent.-VNA