According to the Singapore Index of Inflation Expectations survey, the majority of Singaporeans expect inflation to increase in the next year due to global trade policies and rising fuel prices. SMU’s Sim Kee Boon Institute for Financial Economics and DBS Group Research are co-sponsors and research partners of the survey, which is now in its 59th edition, and it was led by SMU Assistant Professor of Finance (Education) Aurobindo Ghosh. The survey polls 500 individuals representing a cross-section of Singapore households.
Commenting on inflation, Asst Prof Ghosh said the potential of a lingering supply crunch and surge in prices of commodities, such as oil, natural gas and by-products of the petrochemical industry, poses “a clear and present threat to the surge in inflationary pressures globally”. He added that central banks around the world, including the Monetary Authority of Singapore, are keeping a close watch while negotiations are ongoing to resolve the crisis, and showing positive signs for the continuous opening of the Strait of Hormuz as the fragile ceasefire takes shape.