95.8FM

DBS Group Research and SMU’s Sim Kee Boon Institute for Financial Economics (SKBI) released the latest Singapore Index of Inflation Expectations (SInDEx) which showed that households in Singapore have modestly raised their expectations for near-term price increases, driven by mounting global uncertainties, supply chain disruptions and the spectre of new tariffs. The one-year-ahead headline inflation expectations climbed to an average of 3.4% in June, from 3.3% in March. 

SMU Assistant Professor of Finance (Education) Aurobindo Ghosh, and the principal investigator of the SInDEx project, observed that the results of DBS-SKBI SInDEx show that one-year-ahead inflation expectations have marginally increased in the June 2026 survey compared to March 2026, suggesting the pre-emptive tightening might have had the desired effect. Asst Prof Ghosh noted that this anchoring of core expectations indicates that while short-term geopolitical risks are evident, “longer-term inflation expectations in Singapore seem to be more anchored”.

Capital 95.8 FM (News @ 6pm)

According to the Singapore Index of Inflation Expectations (SInDEx) report, jointly compiled by the SMU Sim Kee Boon Institute for Financial Economics with DBS Group, the pressure of tightening monetary policy and geopolitical turmoil, coupled with the rising demand after the recovery of the pandemic and the uncertain economic environment, has led local residents to project that the overall inflation rate one year ahead will rise to 4.6%, up from 3.8% in the last quarter. SMU Assistant Professor of Finance (Education) Aurobindo Ghosh, who leads this survey, noted that consumers have mixed views on the future direction of inflation, possibly because the monetary policy to curb price increases has yet to bear fruit. He explained that as an open and small international market, prices in Singapore may rise in the short term, and then experience a long-term downward trend