The latest quarterly survey for the Singapore Index of Inflation Expectations (SInDEx) from the Sim Kee Boon Institute for Financial Economics at SMU indicated that both medium-and long-term inflation expectations have cooled from three months ago, despite the potential of a trade war between the US and other major economies, particularly China.

The findings were derived from an online survey of about 500 randomly selected individuals representing a cross-section of Singaporean households. Singaporeans’ median headline inflation projection for one year from now stood at 3.11 per cent last month, down from 3.43 per cent in March. "The risk to global free trade with unilateral or retaliatory tariffs imposed pose a clear and present danger to price stability in the globalised economy," said SMU Assistant Professor of Finance Aurobindo Ghosh, who heads the SInDEx project.