According to the latest findings of the SKBI-MasterCard Singapore Index of Inflation Expectations (SInDEx), consumers in Singapore expect inflation to continue falling amidst global declines and uncertainty around the lukewarm global economic outlook.

Jointly developed by the Singapore Management University’s Sim Kee Boon Institute for Financial Economics (SKBI) and MasterCard, the SInDEx is derived from an online survey of around 400 randomly selected individuals from Singapore households. The survey assists researchers in understanding the behaviour and sentiment of decision makers amongst Singapore households.

This is the seventh instalment of the quarterly survey conducted under the collaboration since the indices were officially launched in January 2012.

Programme Director of SMU SKBI, Dr Aurobindo Ghosh said, “The unprecedented and concerted global expansionary monetary policy and open market operations by central banks in the aftermath of the Global Financial Crisis (GFC), as well as record low interest rates in the US, Euro zone and Japan has not caused unhinged inflation expectations in a small open economy like Singapore.”

Aurobindo speculates that one possibility for this would be a moderated imported inflation.

He added further, “Furthermore, the survey respondents seemed to feel that local structural factors like increasing wages from a tight labour market and possibly other pass-through costs, including higher Certificate of Entitlement (CoE) premiums have not significantly increased overall prices.”