Against headwinds of global economic growth, Local consumers in Singapore have shown slight moderation in expectations for inflation over the next year

According to the research findings of the Singapore Index of Inflation Expectations (SInDEx) survey jointly released by DBS Group and the SMU Sim Kee Boon Institute for Financial Economics (SKBI), the one-year-Ahead Inflation expectations fell to 4.0% in March 2024 from 4.2% in December 2023. The survey notes that in spite of uncertain geopolitical and socio-economic climates, the increasing demand for travel, food and beverage and accommodation might have met with a commensurate increase in supply, which led to mostly flattening of inflation expectations across the board. For the longer horizon, the five-year-ahead Consumer Price Index Inflation Expectations have since declined from 4.8% to 4.5% from December 2023 to March this year, noted SMU Assistant Professor of Finance (Education) Aurobindo Ghosh, creator and founding principal investigator of the quarterly survey. He added that the current polled number remains slightly higher than the first quarter average of 4.3% polled since the survey's inception in September 2011 up till 2023.