Chart of the Day: Inflation expectations drop to record lows amid oil rout

According to the research findings of the latest quarterly survey for Singapore Index of Inflation Expectations by SMU, the one-year-ahead inflation expectations of Singapore households has dropped to 3.53 per cent. SMU said that owing mainly to precipitous drop in global oil prices, and other signs of weakness in the nascent global recovery, coupled with an expectation of increase in benchmark interest rates, Singaporeans’ inflation expectations both in the medium-term (one-year-ahead) and long-term (five-year-ahead) dropped in all categories.