Due to a notable drop in crude oil reduced transportation costs, a fall in Singapore's consumers prices was seen in June, which led to a third month of deflation.

Following a 0.3 percent drop in the 12 months to May, the consumer price index fell 0.5 percent in the 12 months through June. June's CPI also plunged 0.5 percent, as compared to May.

It was the last week when Singapore somewhat raised its 2009 inflation forecast, as its economy emerges from a year-long recession.

As of now, the central bank predicts inflation to be between 0.5 percent, implying a drop of 0.5 percent.

Says the statistics department, "Transport and communication prices in June dropped 4.7 percent from a year earlier; housing fell 0.7 percent and recreation slid 0.6 percent. Inflation has slowed from a 26-year high in June 2008 of 7.5 percent."

A fall to below $35 a barrel was seen in crude oil prices in March, from a record $147 last July before rising above $70 earlier this month.