Inflation expectations ease among S'poreans after policy moves: Poll

Singaporeans' inflation expectations for the year ahead eased after monetary policy was tightened and new property cooling measures were announced, according to a survey last month. The quarterly Singapore Index of Inflation Expectations (SInDEx) survey is published jointly by DBS Bank and SMU. The report noted that while headline inflation expectations have continued their upward trend since September 2020, the 3.2 per cent rate is the average of what has been expected in the fourth quarter SInDEx survey over the past 10 years. SMU Assistant Professor of Finance (Education) and Head of the SInDEx survey Aurobindo Ghosh said, "From somewhat divergent beliefs in the September 2021 survey, we observe a broad-based decline in component-wise inflation expectations leading to a convergence of one-year-ahead headline and core inflation expectations closer to a long-term average of about 3 per cent. This convergence is potentially an effect of proactive policymaking via an unexpected tightening of the monetary policy in October 2021 and property cooling measures in December 2021."