Singapore inflation expectations steady as fewer anticipate price drops

Only four in 10 expect inflation to decline over the next year.

Fewer Singaporeans expect inflation to decline in the next 12 months, data from the Singapore Index of Inflation Expectations Survey (SinDEx) of DBS and Singapore Management University (SMU) showed.

The percentage of Singaporeans expecting inflation to decline in September 2024 (44.8%) dipped compared to June 2024 results (45.2%).

The percentage of Singaporeans who expect inflation to increase also decreased to 44.6% in September from 45.4% in June.

Of those expecting inflation to decrease, 37.4% identified the global growth slowdown as the main factor driving further price declines.

Singaporeans who expect inflation to rise cite several factors, including the impact of higher interest rates by central banks of major economies (29.7%), geopolitical uncertainties from the conflicts between Hamas and Israel and Ukraine and Russia (24.5%), and increased demand following the easing of pandemic-era restrictions (14.4%).

Other factors mentioned are supply chain disruptions (14%) and fiscal measures like the GST hike (11.8%).n.

Overall, Singaporeans' one-year-ahead inflation expectations remained at 3.8% in September 2024.