SINGAPORE - Singaporeans' inflation expectations have plummeted to their lowest level since a survey's inception in September 2011 on turmoil in China's equity markets, continued weakness in global demand and slumping oil and commodity prices.
Their one year-ahead all-items inflation expectations in December fell to 2.74 per cent - sharply lower than the 2.92 per cent expected in September, according to the latest quarterly survey by the Singapore Management University (SMU), released on Monday (Jan 18).
This is the lowest since the survey's inception in September 2011.
It is also lower than the historical median headline inflation expectations average of 3.69 per cent and the more recent fourth quarter average of 2.99 per cent.
Median expectations for core inflation, which excludes accommodation and private transportation costs, also sank to an all-time low of 2.85 per cent.
The survey, the Singapore Index of Inflation Expectations (SInDEx), is derived from an online survey of around 500 randomly selected individuals representing a cross section of Singapore households.