Simply put, low inflation means the cost of living in Singapore isn’t rising as quickly. But it also poses its own set of problems for the Singaporean economy.
Surveys show Singaporeans are expecting a further bout of low inflation in 2016. The expectations follow on the back of a long period of falling consumer prices, with last July marking 21 consecutive months of negative inflation.
What does this mean, and why is the low inflation rate in Singapore a problem?