Staff Reporter
Published:
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Geopolitical uncertainty tops inflation worries for more than half of respondents.
About seven in eight Singaporeans (87.1%) expect inflation to increase over the next 12 months, according to the DBS-SKBI Singapore Index of Inflation Expectations survey in September.
The proportion fell slightly from 87.7% in June. Meanwhile, just 3.9% of the 510 respondents expect domestic and global economic developments to lower inflation, down from 4.3% in June.
Average one-year-ahead headline inflation expectations remained at 3.4% in September, unchanged from June, the report showed.
Amongst respondents who expected inflation to rise, 59% cited geopolitical uncertainty, followed by higher trade policy uncertainty at 14.2% and supply chain disruptions at 11.3%.
Amongst those who expected inflation to fall, 25% cited declining global commodity prices as a reason. Another 20% pointed to slower global economic growth, whilst 15% each cited central banks’ delayed interest rate cuts and the resolution of supply chain disruptions.
Respondents expect their overall expenses to rise slightly over the next 12 months, anticipating that conditions for purchasing big-ticket items, such as household appliances and furniture, would worsen slightly.
They also anticipate modest price increases across all surveyed categories, including food, transport, housing, healthcare, and education.
However, the proportion of respondents who expected their household financial situation to deteriorate over the next year fell from 46.0% in June to 38.6% in September.
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