Consumer expectations of inflation at 4-year low: Poll

Singaporeans' inflation expectations have fallen to a four-year low amid lacklustre global sentiment and the recent stock market turmoil, according to a quarterly survey - the latest Singapore Index of Inflation Expectations (SInDEx), published by SMU. The results showed that respondents expect prices to go up by 2.74 per cent over the next 12 months, the lowest reading since the poll's inception in September 2011. The latest number was also down from the 2.92 per cent recorded in the previous survey last September. This shows Singapore households are "probably expecting weaker prospects of global growth and domestic price pressures, and consequently expect overall inflation will be subdued", SMU said. SMU Assistant Professor of Finance (Education) Aurobindo Ghosh said poll respondents were swayed by domestic and global factors. Assistant Prof Ghosh, who co-created the SinDEx, added that globally depressed demand, particularly from emerging markets, and the persistent commodity price downturn might have also reduced overall inflation expectations. The survey, SInDEx, is derived from an online survey of around 500 randomly selected individuals representing a cross section of Singapore households.