By Fiona Chan

INFLATION continued to ease last month, dropping by more than economists had expected, as falling food and oil prices pushed costs downwards.

The consumer price index fell by 0.5 per cent over January, marking the fourth consecutive monthly decline and establishing a clear pattern of disinflation, or decreasing inflation.

On a seasonally adjusted basis, the index declined 0.8 per cent - the largest monthly fall since February 1982, according to HSBC economist Robert Prior-Wandesforde.

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