Hogwash of Tightening FT Influx Pushes up Inflation

Recently, there is this news:

Inflation at near-5-year low as car, housing costs drop

25 Nov 2014

http://www.todayonline.com/business/inflation-near-5-year-low-car-housing-costs-drop

Prices of goods and services in Singapore rose last month at the slowest pace in nearly five years as private road transport and accommodation costs plummeted, leading economists to suggest that consumer prices might decline in the next two months to bring full-year inflation closer to the lower end of the official forecast range.

The consumer price index (CPI) inched up 0.1 per cent last month from October a year ago, following the 0.6 per cent increase in September, a joint statement by the Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) said yesterday…

“(The slowdown in inflation was) mainly on account of base effects associated with fluctuations in car Certificate of Entitlement (COE) premiums, as well as sharper declines in the costs of accommodation and oil-related items,” the statement said.

The high base last year saw the decline in private road transport cost accelerating to 5.6 per cent last month from the 2.8 per cent decrease in September.

The fall in accommodation cost deepened to 1 per cent last month from the 0.6 per cent drop in September, as a result of the weak rental market.

Meanwhile, prices of oil-related items, such as electricity tariffs and petrol, were down 2.1 per cent, extending the 0.6 per cent in the preceding month, as global oil prices remained weak.