Nearly half of Singaporeans expect inflation to decline: DBS, SMU survey

They cited the slowdown of global growth as the main driver for inflation to decline.

Four in 10 Singaporeans (48.6%) expect inflation to decline in the next 12 months, data from the  Singapore Index of Inflation Expectations Survey (SinDEx) of DBS and Singapore Management University (SMU) showed.

The percentage of Singaporeans expecting inflation to decline in December 2023, however, slightly declined compared to September 2023 results (49.5%).

The percentage of Singaporeans who expect inflation to increase has also dipped from 44% in September 2023 to 42.2% in December 2023.

Of those who expect inflation to decrease, most cited the slowdown of global growth (42%) to drive further price decline. Other factors that will likely relieve price pressures cited by Singaporeans were an increase in interest rates by major central banks (33%) and resolution of supply chain disruptions (17.6%).

Singaporeans who believe inflation will increase, meanwhile, point to geopolitical uncertainties due to the conflicts between Ukraine and Russia and elsewhere (28%), central banks in major economies raising interest rates (37%), high demand due to the easing of COVID-19 restrictions (20%), and supply chain disruptions (15%) to increase price levels. 

Overall, Singaporeans' one-year-ahead inflation expectations have dipped to 4.2% in December 2023 from 4.5% in September 2022.