The Singapore Index of Inflation Expectations (SInDEx), conducted by the Singapore Management University (SMU) and co-sponsored by DBS Group Research, indicates that Singapore’s inflation expectations remain stable despite mixed public sentiments. The survey, conducted from 24 to 30 March 2025, involved around 500 Singaporean households and revealed that the One-year-Ahead headline inflation expectations remained unchanged at 3.8% in March 2025 compared to December 2024.
The survey findings highlight that whilst the overall Consumer Price Index Inflation Expectations (CPIEx) increased to 5% in March 2025 from 4.4% in December 2024, reflecting global uncertainty, the One-year-Ahead inflation expectations for major components like food, transportation, and healthcare mostly increased or remained unchanged. Dr. Aurobindo Ghosh, the principal investigator, noted that these expectations signal potential risks from geopolitical tensions and trade wars.
DBS Chief Economist Taimur Baig commented on the survey’s findings, noting the impact of global economic developments on Singapore’s growth and inflation. The survey also revealed that 44.4% of respondents expect inflation to decline in the medium term, whilst an equal percentage anticipate an increase, illustrating a cognitive dissonance among consumers.
The survey further indicated that Singaporean consumers expect a slight increase in expenses over the next 12 months, with changes in consumption behaviour potentially influenced by post-pandemic lifestyle shifts. The next monetary policy statement by the Monetary Authority of Singapore is anticipated by July 2025, which may further influence inflation expectations.
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