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Singaporeans' inflation expectation inches up to 2.7% on global trade headwind fears
THE median one-year-ahead headline inflation (or CPI-All Items inflation) inched up to 2.7 per cent compared with its five-year low of 2.63 per cent recorded in September 2016, the latest quarterly survey for the Singapore Index of Inflation Expectations (SInDEx) showed.
However, the figure is still lower when compared with the historical average of 3.5 per cent and the more recent fourth-quarter average of 2.72 per cent since September 2011.
The survey was done by the Sim Kee Boon Institute for Financial Economics at Singapore Management University (SMU).
SMU assistant professor of finance Aurobindo Ghosh, who is the principal investigator of the SInDEx project, said: "Global growth is at a crossroads, with the nascent growth in the US seemingly a beacon of better days ahead.
"Any protectionist mindset might translate to a loss of opportunity of the stimulus spending and consequent continuation of the aftermath of the global financial crisis.
"Against this backdrop, it is to be expected that for the consumers of a trade-dependent economy like Singapore would prepare for possible increase in overall price levels."