According to SMU’s latest Singapore Index of Inflation Expectations (SInDEx) survey, households in Singapore expect, for the first time in two years, the rate of inflation to rise in the short term. The one-year-ahead inflation expectations of Singapore households rose to 3.73 per cent in September 2014, SMU announced on Monday. “Recent moderation in accommodation prices and private car prices in Singapore, together with subdued global and regional economic conditions, seem to have brought down the current CPI-All inflation rates to very low levels," said SMU Assistant Professor of Finance and Programme Director of the Sim Kee Boon Institute for Financial Economics, Aurobindo Ghosh. "However, the Monetary Authority of Singapore recently projected that there might be an upward pressure on the Singapore core inflation, possibly from the tight labour market and other pass-through costs. The elevated inflation expectations, including the headline inflation rate, is likely to be due to behavioural biases in survey-based data which might cause respondents to over emphasise price rises in everyday items, while ignoring big ticket items,” he added.