According to SMU’s Singapore Index of Inflation Expectations (SInDEx), Singaporeans’ expectations on the inflation rate continue to fall due to global and domestic factors. The index fell to 3.05 per cent for the year in the survey conducted last March, as compared to 3.52 per cent in last December. SMU said that the One-Year-Ahead and Five-Year-Ahead inflation expectations showed the largest drop in a quarterly year basis despite the more flexible financial policy that was unanticipated in January this year. Additionally, although the labour market is tighter and costs are transferred to a higher consumer price, “Singaporeans feel that the overall prices from imported inflation are moderated” to expect a much lower inflation rate, the statement by SMU said.