Inflation expectations in Singapore have continued to slide, reaching the lowest figure of 3.05% since 2011.
According to the latest Singapore Index of Inflation Expectations (SInDEx) a national survey carried out by Singapore Management University (SMU), consumers in Singapore were influenced not just by domestic factors, but also by global ones.
These included weak oil prices highlighted by the uneven recovery worldwide, and exchange rate fluctuations on the dollar fears. The most recent figure is lower than their one-year inflation expectation of 3.48% recorded in December last year. It is also the lowest since the launch of SInDEx in September 2011.
A representative for SMU stated: ‘Reacting to global cues, for both one-year and five-years ahead, citizens of Singapore inflation expectations saw the largest quarterly drop in headline inflation expectations despite an spontaneous relaxing of the monetary policy for Singapore since the beginning of the year.
Consumers also considered domestic issues, such as the constricting labour market and resultant pass-through of higher business costs. The latest online poll of around 500 consumers also shows that the public now expects a lower rate of core inflation, excluding accommodation and private transportation costs. Expectations for core inflation in the year ahead have dropped to 3.35%, from 3.7% last September; all of which is only speculation, the actual inflation rate for March will be released on April 23rd.