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A latest survey by the SMU Sim Kee Boon Institute for Financial Economics and MasterCard has indicated that households in Singapore expect inflation to rise in the next year, with headline inflation increasing to 4.45% and core inflation increasing to 4.39%. SInDEx5, an index which measures inflation expectations for the next five years, is also on the rise. It has risen from 4.97% in March to 5.08% in the June's survey. Headline inflation expectation has also increased from 5.20% to 5.37%.

According to the latest SMU-MasterCard Singapore Index of Inflation Expectations index, responses from 400 households polled online in June suggested that Singapore consumers expect inflation of 4.4 per cent over the next year, after expectations fell to 4.2 per cent in the March survey from 4.6 per cent in December. Aurobindo Ghosh, the index's co-creator and programme director at the SMU Sim Kee Boon Institute for Financial Economics, pointed out that this fourth edition of the survey has a couple of implications.

A SMU-MasterCard Singapore Index of Inflation Expectations index revealed that Singapore households are worried that inflation would worsen in the coming year and expected prices to rise by 4.4 per cent next year. Respondents also expected an inflation rate of 5.08 per cent over the next five years. The joint survey by the two organisations was conducted in June and 400 households were polled online.

Inflation expectations of Singapore households edged higher in June from March, according to the SMU-MasterCard survey on inflation published on Friday, signalling authorities may find it harder to put a lid on future price increases. Households expect prices to rise by 4.45 percent over the next year, up from 4.13 percent in March. The five-year outlook was for headline inflation of 5.37 percent, up from 5.20 percent in the March survey.

Dr Aurobindo Ghosh, Program Director at the Sim Kee Boon Institute for Financial Economics at SMU commented on Singapore's inflation as it continues to climb with housing and transport costs topping the increase. He said: "Increase of liquidity is not necessarily a way of generating more growth if the banks are not lending enough to each other then it is very difficult even with more liquidity to keep control on inflation because inflation is related to more liquidity in the market as well."

The Monetary Authority of Singapore confirmed that it is looking into the setting of the country's key market interest rate – the Singapore Interbank Offered Rate (SIBOR). MAS said regulators in several international financial centres are looking into the setting of key market interest rate benchmarks by banks. This follows Barclays PLC admitting to submitting false rates to help lower the LIBOR, or London Interbank Offered Rate.