It's official: Singapore is getting cheaper

Okay, it's only by 0.4 percent, but latest figures show Singapore actually got cheaper in the last six months of 2009 as deflation hit.

The consumer price index (CPI) for general households during July-December 2009 fell by 0.4 percent compared to the same period in 2008, as opposed to a 0.8 percent increase in the first half of 2009. The CPI for the highest 20% income group dropped by 0.1 percent, 0.5 percent for the middle 60% income group, and 0.8 percent for the lowest 20% income group.

Overall, the 2009 inflation rate for general households was lower compared to 2008, at 0.2 percent from 6.5 percent. Higher costs of food and health care were cited as factors in last year's rise in the CPIs for all income groups, with higher accommodation costs also affecting CPI for the top 20% income group.

Cheaper petrol and holiday travel and lower electricity tariffs partially offset the price increases in 2009.

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