Headline expectations down 3.8% in December 2022: experts

But it is still higher than the average since 2011.

The one-year-ahead headline inflation projections declined to 3.8% in December 2022 from 4.6% in September last year but it is still above the average since 2011, DBS and SMU said in their study.

There is also a significant decrease from the 11-year high in September 2022, the study showed.

The survey also indicated that the median forecasts of CPI-All Items inflation for 2023 was 5.2% and MAS Core inflation was 4.0%. 

Inflation rose by 6.1% in January to November 2022, and 6.7% year-on-year in November 2022, the latest CPI data showed. 

The Monetary Authority of Singapore has tightened monetary policy in an effort to slow the momentum of inflation and ensure medium-term price stability, read the study. 

On the Singaporean’s expectations for inflation, residents said the pandemic will moderately hit the country’s economic growth. Singaporeans said they will spend more due to price increases despite possible cutbacks on consumption.

Around 41% of those surveyed expect inflation to decrease, while 45% felt that it will increase, with the main reasons for decrease being slowdown in global growth and central banks raising interest rates, and for increase being central banks raising interest rates, geopolitical uncertainties and higher demand due to relaxation of pandemic restrictions.