ECONOMY | Staff Reporter, Singapore

Singaporeans expect prices to rise by 2.97%

Despite general economic growth, geopolitical worries remain.

Singaporeans' inflation expectations for the year ahead rose by 2.97% in December 2017, due to geopolitical worries amidst broader economic growth, the Singapore Management University (SMU) revealed.

According to Sim Kee Boon Institute for Financial Economics' (SKBI) index of inflation expectations (SInDEx), the current one-year-ahead median headline inflation is still lower than the historical average of 3.44%, but it is higher than the recent fourth quarter average of 2.84%.

Excluding accommodation and private road transportation related costs, the one-year-ahead median Singapore core inflation expectations was recorded at 2.91% in December 2017, slightly higher than the September 2017 surveyed value of 2.89%.

For a subgroup of the population who own their accommodation and use public transport, the one-year-ahead median Singapore core inflation rate for the subgroup also edged up to 2.92% in December 2017 compared to 2.88% polled in September 2017.

"This subgroup’s expectations of core inflation closely resembles the Singapore Core Inflation Expectations, as unlike the general population they are not exposed to private transport or private accommodation expenses. These results indicate that there seems to be a fairly stable perception of future overall price changes representing the Singapore core inflation rate that excludes housing and private road transportation," SMU said. 

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