Local consumers' forecast for next year's inflation upped slightly at 4.9% in June

The one-year ahead inflation is expected to hit 4.9% in June 2023, compared to 4.6% in March, according to the Singapore Index of Inflation Expectations (SInDEx) published jointly by the SMU Sim Kee Boon Institute for Financial Economics (SKBI) and DBS. SMU Assistant Professor of Finance and Founding Principal Investigator of the Quarterly DBS-SKBI SInDEx Project Aurobindo Ghosh  highlighted, “The World Bank Group summarised the ‘precarious’ state of the global economy in its June 2023 Global Economic Prospects citing overlapping economic shocks. These are precipitated by the ongoing geopolitical conflicts and tensions, tightening of monetary policy to contain runaway inflation, restrictive credit conditions due to recent banking sector stress, with warnings of slowdown in global growth in 2023 and a lingering weakness in 2024. A small open trade-based economy like Singapore is susceptible to these global headwinds and has to walk a fine line between controlling cost of living and catalysing growth.”

Lianhe Zaobao